When the Market Falls But Some Stocks Soar
April 1, 2026 was a brutal day for NEPSE — the index shed 74.73 points (-2.62%) to close at 2,776.36. Yet amid the carnage, six stocks hit back-to-back 10% upper circuits, defying the broader selloff. Understanding this divergence is key for investors navigating Nepal's volatile market.
The Six Circuit Stocks
The stocks that hit consecutive upper circuits on April 1, 2026 were:
- RSML (Ridi Solu Mandu Laghubitta Bittiya Sanstha) — second consecutive upper circuit
- BJHL (Baljhala Hydropower) — circuit for the second session running
- SKHL (Sunkoshi Hydropower Limited) — consecutive upper circuit
- SKHEL (Sindhuli Khola Hydropower Energy Limited) — back-to-back 10% gain
- RLEL (Rairang Lekali Electricity Limited) — consecutive upper circuit
- HFIN (Himalayan Finance) — circuit for a second day
Why Do Stocks Hit Circuits on a Down Day?
Circuit breakers in NEPSE are applied at the individual stock level — a stock can hit +10% even when the broader index is crashing. This divergence typically signals:
- Company-specific news: A project completion, merger, or dividend declaration drives buying irrespective of market conditions.
- Low liquidity: Micro-cap stocks with thin floats can be moved sharply by a handful of buyers.
- Contrarian accumulation: Informed investors buying beaten-down quality stocks while retail investors panic.
- Technical breakout: A stock breaking long-term resistance may attract momentum buyers even on red days.
What This Means for Investors
- Market internals are not uniform: Even in a crash, pockets of strength exist.
- Caution on chasing circuits: Back-to-back upper circuits often invite speculative froth and sharp reversals.
- Liquidity risk: Upper circuit stocks may be impossible to sell at circuit price — buyers dominate.
- Watch for the third day: Consecutive circuits can trigger SEBON/NEPSE surveillance measures.
Sector Breakdown
Of the six stocks, four are from hydropower (BJHL, SKHL, SKHEL, RLEL), one from microfinance (RSML), and one from finance (HFIN). The hydropower representation is notable given that the Hydropower index itself fell 2.81% on the same day — these are clearly company-specific moves, not sector momentum.
Key Takeaway
Six circuit stocks on a -2.62% market day is a reminder that NEPSE is not a monolith. While the index reflects broad sentiment, individual stocks follow their own catalysts. Always analyse the fundamental reason before chasing a circuit stock.