Kathmandu | The first trading session of the new Nepali year 2082 opened on a strong note, with the NEPSE index gaining 27.14 points, or 1.01%, to close at 2,689.22. This positive momentum comes after a week of downward pressure, offering a fresh wave of optimism to investors looking ahead to the new fiscal period.

Market Highlights: Volatile Yet Vibrant

The market witnessed moderate volatility, with the benchmark index swinging between an intraday high of 2,704.58 and a low of 2,669.22. However, investor activity remained robust throughout the session. A total of 320 scrips were traded across 69,364 transactions, where 212 scrips advanced, 34 declined, and none remained unchanged.

Spotlight on Turnover: BHL Dominates the Charts

The day’s most eye-catching number was the massive turnover of NPR 2.01 billion from Balephi Hydropower Limited (BHL)  accounting for nearly a quarter of the total daily turnover of NPR 8.54 billion. However, this heavy trading volume came with a steep price decline of 9.69%, suggesting possible promoter share sales or large offloads by insiders. While such bulk transactions are not uncommon, the sheer size has raised eyebrows in the market.

Sector Focus: Development Banks Make a Comeback

The Development Bank sector surged by 2.46%, trailing only the Investment sector, which gained 2.71%. This rebound is especially notable because many development bank stocks were under pressure just a day earlier (Sunday), leaving many investors wondering — why the sudden turnaround?

Several factors could be contributing:

• Technical bounce: Some of the development bank scrips may have reached attractive technical levels, triggering short-term buying.

• Interest rate dynamics: Commercial banks have recently reduced fixed deposit rates for Baisakh, which could make higher-dividend-paying development banks look more attractive to yield-seeking investors.

• Quarterly performance: Expectations (or actual release) of positive earnings and dividend declarations may be fueling the rally.

• Market rotation: As some sectors lose steam, investor capital is rotating into undervalued financial stocks  with development banks benefiting the most from this trend.

Top Gainers: Development Banks & Microinsurance in the Limelight

Three development banks hit the 10% positive circuit limit:

• Corporate Development Bank Limited

• Green Development Bank Limited

• Saptakoshi Development Bank Limited

They were joined by Nepal Microinsurance Company (NMIC) and Crest Micro Life Insurance, which posted gains of 9.99% and 9.98% respectively — further signaling growing investor interest in niche financial sectors.

Top Losers: Hydropower Pullback

Aside from BHL’s dramatic fall, Wean Nepal Laghubitta Bittiya Sanstha (WNLB) dropped 6.17%, while NIBL Stable Fund slid 3.72%.

Sentiment Watch: Cautious Optimism, But Questions Remain

The rise in NEPSE, turnover, and market capitalization (which now stands at NPR 4.47 trillion) all indicate a return of investor confidence. However, the sudden spike in development banks  especially after their weak performance the day before  hints at speculative behavior or insider optimism that may not yet be fully understood by the broader public.

Conclusion: A Strong Start, But Caution Prevails

The Nepali New Year kicked off with renewed optimism as NEPSE posted notable gains, and sectors like development banking and microinsurance took the lead. However, it’s important not to draw long-term conclusions from a single day’s performance. Investors are still waiting for clearer cues including regulatory clarity, upcoming quarterly earnings, and broader institutional movements to determine if this momentum is sustainable. Until then, cautious optimism seems to be the mood of the market.