In what looks like a strategic pivot, investors on NEPSE are beginning to reduce exposure to hydropower stocks and moving capital toward financial and insurance sectors. While NEPSE’s overall index keeps rising—reaching 2703.96 on July 3—hydropower’s dominance in market volume has been steadily falling.
At its peak on June 26, the hydropower sector represented over 70% of total daily trading volume. Just a week later, on July 3, that share had dropped sharply to 44.19%. Meanwhile, sectors like development banks (11.32%), finance (6.13%), and life insurance (7.82%) are showing significant gains in their volume contributions.
| Date | Index | Change | Volume | DevelopmentBanking | Hydropower | Finance | Micro | Non-life | Life | Manu | Others | Investment | Hotel |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 7/3/2025 | 2703.96 | 9.14 | 9.38B | 11.32% | 7.84% | 44.19% | 6.13% | 4.21% | 5.89% | 7.82% | 2.71% | 2.97% | 5.27% |
| 7/2/2025 | 2694.82 | 34.43 | 9.21M | 9.96% | 7.77% | 49.55% | 2.05% | 6.37% | 4.19% | 4.07% | 2.23% | 1.95% | 10.33% |
| 7/1/2025 | 2660.39 | 28.91 | 6.86M | 8.19% | 7.31% | 53.69% | 1.45% | 7.23% | 1.93% | 2.70% | 2.15% | 1.78% | 11.94% |
| 6/30/2025 | 2631.48 | 9.20 | 6.34M | 9.38% | 6.73% | 59.00% | 1.26% | 4.56% | 2.92% | 2.72% | 2.51% | 2.05% | 6.51% |
| 6/29/2025 | 2622.28 | 26.54 | 7.03M | 6.53% | 6.22% | 62.39% | 1.40% | 4.33% | 1.72% | 2.53% | 2.53% | 3.96% | 5.03% |
| 6/26/2025 | 2595.74 | -4.46 | 7.67M | 4.97% | 3.13% | 70.99% | 1.40% | 2.79% | 1.68% | 2.91% | 2.98% | 2.10% | 4.82% |
| 6/25/2025 | 2600.2 | -0.33 | 5.78M | 2.98% | 4.52% | 63.34% | 1.41% | 2.48% | 1.87% | 2.85% | 2.98% | 2.58% | 10.61% |
| 6/24/2025 | 2600.53 | -0.23 | 5.68M | 4.58% | 6.28% | 61.85% | 1.78% | 3.48% | 2.24% | 2.90% | 3.38% | 2.60% | 8.63% |
| 6/23/2025 | 2600.76 | 4.79 | 6.32M | 3.56% | 4.21% | 68.58% | 1.86% | 2.57% | 2.30% | 2.35% | 4.06% | 2.40% | 4.63% |
| 6/22/2025 | 2595.97 | -32.93 | 8.95M | 4.58% | 4.84% | 68.92% | 1.23% | 3.06% | 1.69% | 3.13% | 2.77% | 2.85% | 4.09% |
Where is the money going?
Recent data reveals that:
- Development banks grew their share from under 5% to over 11% within one week.
- Finance companies increased from barely 1.4% to over 6%.
- Life and non-life insurance sectors more than doubled their trading volume percentages in the same period.
This points to a clear sector rotation: investors are not leaving the market—they are reallocating funds from a once-hot sector to more promising or undervalued alternatives.
Such a move suggests that traders are eyeing sustainable sectors with stable returns rather than chasing short-term hydropower rallies. Insurance, finance, and development banks now seem to offer better perceived value or growth potential.
Is this a short-term trend or a long-term shift?
Analysts believe this could be more than just a temporary move. The consistent decline in hydropower’s volume and the simultaneous rise in other sectors over multiple trading days hint at a larger trend in investor behavior.
The next few weeks will be crucial to watch. If the trend continues, we could see financial sectors take center stage in NEPSE for the rest of the quarter.
