Hydropower Sector Takes the Hardest Hit Among Major Sectors
Nepal's Hydropower sub-index plunged 4.84% on April 5, 2026, shedding 184.99 points to close at 3,634.74 — making it the worst-performing major sector of the session (excluding the smaller OTHERS category). With dozens of hydropower stocks on NEPSE's boards, the sector's sharp decline dragged the broader index down significantly.
Hydropower Sector Performance — April 5, 2026
| Metric | Value |
|---|---|
| Hydropower Sub-Index Close | 3,634.74 |
| Point Change | -184.99 |
| Percentage Change | -4.84% |
Top Hydropower Losers — April 5
- BEDC (Bhugol Energy): -10.00% to Rs 430.2 (24,011 shares)
- SANVI (Sanvi Energy): -9.99% to Rs 680.9 (58,695 shares)
- PURE (Pure Energy): -9.99% to Rs 843.4 (20,350 shares)
- DHEL (Daramkhola Hydro Energy): -9.38% to Rs 598 (40,552 shares)
- NHPC (National Hydro Power): -9.32% to Rs 251 (1,433,936 shares)
- RIDI (Ridi Power): -9.17% to Rs 316 (952,846 shares)
- TSHL (Three Star Hydropower): -9.17% to Rs 640 (9,732 shares)
- HIMSTAR (Him Star Urja): -9.12% to Rs 827 (15,681 shares)
- SOHL (Solu Hydropower): -8.57% to Rs 603.9 (186,946 shares)
NHPC: Massive Volume, Near-Circuit Decline
National Hydro Power Company (NHPC) was a standout on April 5, with 1,433,936 shares traded — among the highest volumes in NEPSE. NHPC fell 9.32% to Rs 251, approaching lower circuit territory, generating Rs 367.63 million in turnover. NHPC is one of NEPSE's most actively traded hydropower stocks due to its large float and institutional following — its sharp decline signals broad institutional liquidation of hydropower exposure.
RIDI Power: High Volume, Near-Circuit Fall
Ridi Power Company (RIDI) fell 9.17% to Rs 316 on 952,846 shares traded (Rs 309.32M turnover). Like NHPC, RIDI's high volume on a down day suggests institutional selling rather than retail panic — both stocks are among the more liquid hydropower names.
Why Is Hydropower Falling So Sharply?
- Valuation correction: Hydropower stocks rallied strongly in 2024-2025 on energy sector optimism. The current pullback is partly a valuation normalization after stretched multiples.
- Interest rate sensitivity: Hydropower projects are capital-intensive and debt-heavy. Any hint of rising interest rates (or fear thereof from policy changes) directly pressures project IRRs and stock valuations.
- Liquidity preference: In market panics, investors sell liquid stocks first — NHPC and RIDI are among NEPSE's most liquid hydro names, making them first-exit candidates.
- NEA payment risks: Any regulatory uncertainty about Nepal Electricity Authority's power purchase payment reliability adds operational risk to all hydropower operators.
The Exception: Circuit Stocks
Even as the sector crashed, BJHL, SKHL, RLEL, and SKHEL hit upper circuits — demonstrating that company-specific factors can completely decouple individual stocks from sector trends. This divergence within hydropower itself is unusual and worth monitoring.
Long-Term Hydropower Thesis Intact
Despite the short-term pain, Nepal's hydropower sector has strong structural tailwinds: growing domestic electricity demand, power export agreements with India, and government electrification targets. Quality hydropower operators with secured PPAs and manageable debt are likely to recover when market sentiment stabilises. The current selloff is creating entry opportunities for patient investors — but position sizing and timing remain critical.