NEPSE sector rotation · 12 sectors
Which sectors lead, and which are turning.
Every sector against the average NEPSE company: its returns, whether it is ahead or behind, and whether that gap is growing. Leading at the 9 Oct 2026 close: Commercial banks, Hydropower, Life insurance, Trading houses.
Close · 9 Oct 2026NEPSE published data, equal-weight, adjusted for bonus shares
Returns by sector
Equal-weight: every company in a sector counts the same. Price only, adjusted for bonus shares; dividends not included. “Since start” is 9 Oct 2025 to 9 Oct 2026. Sorted by 3 months.
| Sector | 1 week | 1 month | 3 months | 6 months | Since start | Now |
|---|---|---|---|---|---|---|
| Manufacturing and processing | −0.7% | −1.4% | +7.9% | +14.7% | +118.8% | Weakening |
| Commercial banks | +2.2% | +5.2% | +5.1% | +7.3% | +10.5% | Leading |
| Trading houses | −0.5% | +1.3% | +0.1% | −9.9% | −6.2% | Leading |
| Life insurance | −0.4% | +3.2% | −5.3% | −8.0% | −8.0% | Leading |
| Hydropower | +0.2% | +1.4% | −5.9% | −3.9% | +2.1% | Leading |
| Microfinance | −1.2% | −0.6% | −8.0% | −11.1% | −11.1% | Lagging |
| Hotels and tourism | −1.0% | −4.8% | −10.2% | −7.2% | +25.0% | Lagging |
| Development banks | −0.6% | −3.4% | −11.8% | −14.0% | −0.3% | Lagging |
| Investment | −1.2% | −7.9% | −11.9% | −17.9% | −22.1% | Lagging |
| Finance | −1.0% | −3.0% | −12.5% | −7.5% | −5.7% | Lagging |
| Non-life insurance | −0.6% | −1.1% | −14.4% | −13.8% | −14.0% | Improving |
| Others | −3.4% | −5.2% | −14.8% | −22.1% | −11.5% | Improving |
| Average company | −0.3% | 0.0% | −6.4% | −6.1% | +1.6% |
Sector status board
Pulling ahead: Commercial banks, Hydropower, Life insurance, Trading houses. Catching up: Non-life insurance, Others.
The bar is each sector’s last 3 months against the average company: right of the line is ahead, left is behind (100 = in line). The arrow is how that changed in the last 4 weeks. Sectors often move round these groups in this order. Often, not always.
Leading Ahead of the average company and still pulling away.
- Commercial banks112.3 +2.8 in 4 weeks
- Trading houses106.9 +2.8 in 4 weeks
- Life insurance101.1 +4.9 in 4 weeks
- Hydropower100.5 +0.8 in 4 weeks
Weakening Still ahead, but the lead is shrinking.
- Manufacturing and processing115.2 −6.1 in 4 weeks
Lagging Behind and falling further back.
- Microfinance98.3 −0.8 in 4 weeks
- Hotels and tourism95.9 −2.6 in 4 weeks
- Development banks94.2 −2.7 in 4 weeks
- Investment94.1 −6.2 in 4 weeks
- Finance93.4 −1.3 in 4 weeks
Improving Behind, but catching up.
- Non-life insurance91.4 +1.5 in 4 weeks
- Others91.0 +0.8 in 4 weeks
Which sectors move together
Most independent (lowest average link to the rest): Trading houses and Finance. Sectors that move differently from each other are what spreading holdings across sectors relies on. Based on daily moves over the last 120 sessions; on NEPSE most sectors rise and fall together.
How the others moved with Commercial banks
- HydropowerOften moves with 0.79
- Life insuranceOften moves with 0.79
- MicrofinanceOften moves with 0.79
- OthersOften moves with 0.70
- Development banksOften moves with 0.68
- Hotels and tourismOften moves with 0.68
- Manufacturing and processingOften moves with 0.64
- InvestmentOften moves with 0.60
- Non-life insuranceMoves more on its own 0.58
- FinanceMoves more on its own 0.56
- Trading housesMoves more on its own 0.45
See the full table
| Commercial ba… | Development b… | Finance | Hotels and to… | Hydropower | Investment | Life insurance | Manufacturing… | Microfinance | Non-life insu… | Others | Trading houses | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Commercial ba… | 1.00 | 0.68 | 0.56 | 0.68 | 0.79 | 0.60 | 0.79 | 0.64 | 0.79 | 0.58 | 0.70 | 0.45 |
| Development b… | 0.68 | 1.00 | 0.61 | 0.76 | 0.75 | 0.62 | 0.65 | 0.65 | 0.71 | 0.58 | 0.65 | 0.46 |
| Finance | 0.56 | 0.61 | 1.00 | 0.60 | 0.65 | 0.59 | 0.55 | 0.47 | 0.65 | 0.53 | 0.60 | 0.42 |
| Hotels and to… | 0.68 | 0.76 | 0.60 | 1.00 | 0.82 | 0.64 | 0.68 | 0.74 | 0.72 | 0.60 | 0.71 | 0.54 |
| Hydropower | 0.79 | 0.75 | 0.65 | 0.82 | 1.00 | 0.73 | 0.84 | 0.78 | 0.84 | 0.72 | 0.84 | 0.56 |
| Investment | 0.60 | 0.62 | 0.59 | 0.64 | 0.73 | 1.00 | 0.62 | 0.57 | 0.64 | 0.50 | 0.64 | 0.38 |
| Life insurance | 0.79 | 0.65 | 0.55 | 0.68 | 0.84 | 0.62 | 1.00 | 0.59 | 0.82 | 0.79 | 0.73 | 0.43 |
| Manufacturing… | 0.64 | 0.65 | 0.47 | 0.74 | 0.78 | 0.57 | 0.59 | 1.00 | 0.66 | 0.42 | 0.66 | 0.49 |
| Microfinance | 0.79 | 0.71 | 0.65 | 0.72 | 0.84 | 0.64 | 0.82 | 0.66 | 1.00 | 0.70 | 0.79 | 0.51 |
| Non-life insu… | 0.58 | 0.58 | 0.53 | 0.60 | 0.72 | 0.50 | 0.79 | 0.42 | 0.70 | 1.00 | 0.70 | 0.29 |
| Others | 0.70 | 0.65 | 0.60 | 0.71 | 0.84 | 0.64 | 0.73 | 0.66 | 0.79 | 0.70 | 1.00 | 0.42 |
| Trading houses | 0.45 | 0.46 | 0.42 | 0.54 | 0.56 | 0.38 | 0.43 | 0.49 | 0.51 | 0.29 | 0.42 | 1.00 |
About sector rotation
- What is sector rotation?
- Sector rotation is money moving from one group of companies to another: out of banks and into hydropower, say. On NEPSE it often follows interest rates, dividend season and policy news. This page shows which sectors have been doing better than the average company, and whether that lead is growing or shrinking.
- How is relative strength worked out here?
- A sector's 63-session return divided by the average company's over the same sessions, times 100. Above 100, the sector did better than the average company; below, worse. Momentum is how much that figure changed over the last 21 sessions.
- Why do these returns differ from the /sectors page?
- The /sectors page weights by market value, so a few large companies dominate. This page weights every company equally, so it shows what a typical company in the sector did. Both are adjusted for bonus shares; neither includes dividends.
- Which NEPSE sector is strongest right now?
- On relative strength at the 9 Oct 2026 close, Manufacturing and processing (115.2). Leading, meaning ahead and still gaining: Commercial banks, Hydropower, Life insurance, Trading houses. A sector's recent strength says nothing certain about what it does next.
Also: every sector by market value, market breadth, the heat map and the screener.
Watch a whole sector move
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