Market rebounds after six-day losing streak

The market recovery was broad-based, with 12 of the 13 sectoral indices advancing. The Hydropower index led the gains, rising 1.01%, while the Manufacturing and Processing index was the only sector to decline, falling 1%.

Hydropower stocks attracted renewed buying interest after suffering sharp declines following the floods in the Bhotekoshi area, which damaged or swept away more than a dozen hydropower projects. Investors have also been watching cement companies, expecting reconstruction-related demand to increase following the disaster.

A total of 181 companies recorded gains on Tuesday, while 84 declined and 12 remained unchanged. Upper Mailung Khola Hydropower posted the biggest gain, rising 7.15%.

On the losing side, Upakar Laghubitta fell 8.48% to NRs 2,494 per share, the steepest decline of the day. Ghorahi Cement dropped 5.53% to NRs 376.

Trading activity, however, remained subdued. Turnover stood at NRs 2.90 billion from the trading of 7.61 million shares of 341 securities, down from Rs 3.64 billion on Monday. Tuesday’s turnover was the lowest in about two months, with the market last recording a lower figure on June 29, when shares worth NRs 2.67 billion changed hands.

Solux Hydropower was the most actively traded company, with shares worth NRs 138.2 million changing hands at NRs 659 per share, up 1.70% from the previous session. Shivam Cement followed with turnover of NRs 136.3 million at NRs 654 per share.

The rebound marks a modest recovery for the market after nearly a week of consecutive declines, although the relatively low turnover suggests investor participation remains cautious.