Market Overview: March 26, 2026
| Indicator | Value | Change |
|---|---|---|
| NEPSE Index | 2,929.85 | -6.09 (-0.21%) |
| Previous Close | 2,935.94 | - |
| Total Market Cap | NPR 4,435,032 Mn | - |
| Listed Companies | 284 | - |
| Listed Shares | 9,224.46 Mn | - |
| Market Cap/GDP | 72.62% | - |
The market opened near the previous close and drifted lower throughout the session, primarily due to selling pressure in banking stocks. However, the decline was contained as gains in Manufacturing and Hydropower provided offsetting support. The narrow trading range continues to reflect the volatility compression (12-month StdDev at 90.80) that has characterized recent sessions.
Sector-wise Performance
Sector Sub-Index Analysis
| Sector | Sub-Index | Daily Change | 1M Avg Return | Market Cap (Mn) |
|---|---|---|---|---|
| Manufacturing | 10,479.50 | +1.04% | +8.6% | 224,803 |
| Hydropower | 4,019.71 | +0.42% | +6.0% | 701,003 |
| Hotels | 7,716.31 | +0.23% | +9.4% | 118,457 |
| Finance | 2,636.32 | -0.46% | +8.7% | - |
| Dev Banks | 6,337.14 | -0.57% | +6.0% | 197,474 |
| Banking | 1,531.24 | -0.89% | - | 1,056,197 |
Sector Rotation Analysis
Today's session showcased clear sector rotation dynamics. The three gainers (Manufacturing, Hydropower, Hotels) represent non-financial sectors, while all three decliners (Banking, Dev Banks, Finance) are financial sector components. This rotation pattern suggests smart money is moving from high-weight financial stocks to momentum sectors.
Manufacturing: Sector Leader (+1.04%)
The Manufacturing sub-index at 10,479.50 was today's standout performer, adding +1.04%. This sector has been one of the strongest over the past month with +8.6% average return. With a market cap of NPR 224,803 Mn across 22 companies, Manufacturing benefits from import substitution policies and growing domestic demand. RSML was a key contributor, surging to Rs.2,013.1 (+10% upper circuit).
Hydropower: Steady Gains (+0.42%)
The Hydropower sub-index climbed to 4,019.71 with a +0.42% gain. As NEPSE's second-largest sector by market cap (NPR 701,003 Mn, 91 companies), hydropower's steady performance provides important index support. The monthly average return of +6.0% shows consistent buying interest in this sector.
Hotels: Continued Momentum (+0.23%)
Hotels maintained their monthly leadership with the sub-index at 7,716.31 (+0.23% daily). With +9.4% monthly return, the hotel sector (NPR 118,457 Mn, 7 companies) has been the top performer. Tourism recovery and improved occupancy rates continue to drive institutional interest in hotel stocks.
Banking: Index Weight Drag (-0.89%)
The Banking sub-index fell -0.89% to 1,531.24, which was the primary reason for the overall NEPSE decline. As the heaviest sector (24.5% of market cap, NPR 1,056,197 Mn, 19 companies), any weakness in banking disproportionately affects the index. The selling appeared broad-based across major banking names.
Top Gainers of the Day
| Stock | Price (Rs.) | Change | Sector |
|---|---|---|---|
| HFIN | 262.9 | +10.00% | Finance |
| RSML | 2,013.1 | +10.00% | Manufacturing |
| SOHL | 707.1 | +9.99% | Others |
The top gainers hit or approached the upper circuit limit of +10%. HFIN at Rs.262.9 and RSML at Rs.2,013.1 both locked at the +10% circuit, indicating strong demand with no sellers. SOHL at Rs.707.1 (+9.99%) also saw exceptional buying interest. These circuit-hitting moves suggest institutional accumulation or significant positive catalysts for these individual stocks.
Volume Leaders
| Stock | Volume (Shares) | Price (Rs.) | Significance |
|---|---|---|---|
| KBL | 263,000 | 240 | Most traded stock, consistent volume leader |
| KSBBLP | 260,000 | - | Strong promoter interest |
| API | 254,000 | - | High liquidity manufacturing stock |
| NGPL | 231,000 | - | Active trading interest |
KBL continued its reign as the most actively traded stock with 263,000 shares changing hands. The consistent high volume in KBL (a banking stock priced at Rs.240) makes it a favorite among retail traders and intraday participants. KSBBLP and API also saw significant turnover, indicating broad market participation beyond just the index heavyweights.
Complete Banking Stock Price Table
Banking remains the most watched sector on NEPSE due to its dominant 24.5% weight. Here is the complete price table for major commercial bank stocks as of March 26, 2026:
| Bank | Symbol | Price (Rs.) | Key Metric |
|---|---|---|---|
| Everest Bank | EBL | 714 | Highest priced banking stock |
| Nabil Bank | NABIL | 539 | Largest private bank |
| Nepal SBI Bank | SBI | 427.9 | Strong parent backing |
| Siddhartha Bank | SBL | 412 | Growing market share |
| NIC Asia Bank | NICA | 398 | Efficient operations |
| Sanima Bank | SANIMA | 367 | Green banking focus |
| Agriculture Dev Bank | ADBL | 330 | Government ownership |
| Nepal Bank | NBL | 278.9 | Oldest commercial bank |
| NMB Bank | NMB | 265.7 | Digital leader |
| Kumari Bank | KBL | 240 | Highest volume (263K) |
Banking Sector Fundamentals Quick View
The banking sector's daily decline should be viewed in context of the broader sector fundamentals which remain stable:
- CD Ratio: 74.32% (healthy lending to deposit balance)
- NPL Ratio: 5.42% (moderate, manageable with adequate provisioning)
- Capital Adequacy: 12.61% (well above NRB minimum requirements)
- Liquid Assets/Deposit: 23.58% (comfortable liquidity buffer)
- Total Branches: 6,502 nationwide
- Deposit Accounts: 61.8 million
- Interest Spread: 3.49% (healthy profitability margin)
Market Breadth and Depth Analysis
Despite the -0.21% index decline, market breadth provides a nuanced picture. The presence of stocks like HFIN, RSML, and SOHL hitting +10% upper circuits while the index declined suggests selective strength in specific pockets. The volume distribution shows healthy participation with multiple stocks trading above 200,000 shares.
The narrow daily range (previous close 2,935.94 vs close 2,929.85, just 6.09 points) reflects the ongoing volatility compression with 12-month standard deviation at 90.80. This tight range has persisted for weeks, building energy for an eventual breakout.
Macro Context for Today's Trading
Today's market action occurred against a stable macroeconomic backdrop:
- NRB repo rate remains at 4.25%, supportive of equity markets
- Interbank rate at 2.75% indicates comfortable liquidity
- Average lending rate at 7.00% with deposits at 3.51%
- Inflation at 3.25% well within NRB comfort zone
- GDP growth at 3.99% supporting corporate earnings
- Forex reserves at NPR 3,303 Bn providing external stability
Key Observations and Outlook
Sector Rotation Signal
The divergence between financial sectors (banking, finance, dev banks declining) and non-financial sectors (manufacturing, hydropower, hotels rising) is a classic sector rotation pattern. This suggests that while overall market direction remains near the 3,000 level, money is actively being reallocated between sectors.
Volume Analysis
Today's volume leaders were primarily mid-cap and value stocks rather than large-cap banking names. KBL at Rs.240 and API were the volume frontrunners, suggesting retail and momentum traders remain active. For the NEPSE to break above 3,000 decisively, we need to see volume shift to heavyweight banking stocks like NABIL, EBL, and NICA.
Near-Term Outlook
The -0.21% decline is a minor fluctuation that does not change the broader technical or fundamental picture. NEPSE remains in a well-established uptrend from 2,120 (2024) to 2,929, with the 3,000 milestone as the next major target. Key levels to watch:
- Resistance: 3,000 (psychological), 3,050 (next technical level)
- Support: 2,900 (immediate), 2,850 (strong), 2,800 (critical)
- Key sector: Banking sub-index must stabilize above 1,520 for index support
Trading Strategy for Tomorrow
Based on today's sector rotation pattern, here are tactical considerations:
- Manufacturing: Momentum remains strong (+1.04% daily, +8.6% monthly). Look for continuation plays in leading names.
- Hydropower: Steady accumulation pattern (+0.42% daily, +6.0% monthly). Suitable for position building.
- Banking: The -0.89% decline may create buying opportunities in oversold banking names, especially at lower RSI levels.
- Hotels: Sector leadership (+9.4% monthly) remains intact. Consider trailing stops to protect gains.
- Volume stocks: Watch KBL, KSBBLP, and API for intraday momentum setups based on opening volume.