Panic vs. Rigging: What Driven NEPSE’s Heavy Downward Spiral?

Oct 5, 2026
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The Nepal Stock Exchange (NEPSE) index experienced a notable decline today, dropping 22.88 points to settle at 2,564.36. Market activity recorded a total turnover of NPR 3.27 billion (NPR 3.27 Arba), with approximately 9.00 million shares changing hands across the trading floor. Following today’s contraction, total market capitalization stood at NPR 4.41 trillion (NPR 44.15 Kharba).

Market Breadth

Advance (32)
Decline (242)
Unchanged (4)

Advance-Decline (A/D) ratio of 0.13 highlights overwhelming bearish sentiment across sectors, as decliners outpaced advancers by nearly 8 to 1.

Top Gainers/Losers

In a sharp market downturn, the heavy presence of debentures and mutual funds among top gainers highlights a clear shift toward defensive asset allocation. Driven by capital preservation, investors seek shelter in low-volatility fixed-income instruments and discounted funds, while broader equities face intense selling pressure.

Stocks like TVCL, SINDU, and ULHC featured among the top decliners today, dropping around 5% each. This widespread decline underscores building selling pressure as sentiment across individual equities remains risk-off.

Top Turnover

Liquidity remained heavily concentrated among top market drivers, with the leading five stocks commanding 17% (NPR 54.75 cr) of the day's total NPR 3.28 billion turnover.

Ghalemdi Hydro Limited (GHL) stood out as the sole gainer among liquidity leaders, advancing 2.23% to LTP 275 on a massive NPR 22.87 cr turnover (7% market weight).

Sector Wise Summery

Technical Outlook

Key Takeaway for Traders & Investors

Short-Term Traders: Exercise patience until price action signals a clear bounce off the 2,546 – 2,550 support band or a volume-backed breakout above 2,600. Avoid catching falling knives during strong A/D ratio contractions.

Long-Term Investors: Consider phased/partial accumulation in fundamental scripts near key support zones rather than aggressive lump-sum entries.

Note: Educational Purpose Only (RICKY SINGH )