Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal’s secondary market witnessed a sharp correction on Tuesday, with the NEPSE index plunging 42 points to close at 2,726 points, as selling pressure dominated across most sectors. The decline marked a broad-based market retreat on the third trading day of the week.
According to the Nepal Stock Exchange (NEPSE), share prices of only 34 companies advanced, while 224 companies recorded losses. Prices of two companies remained unchanged, reflecting overwhelmingly negative market breadth.
Trading activity, however, remained robust. A total of three crore (30 million) shares of 333 companies were traded, generating a turnover of Rs 14.16 billion, indicating strong investor participation despite the downward trend. Market analysts said the high transaction volume alongside a falling index suggests profit-booking and portfolio rebalancing by investors.
Among individual stocks, Radhi Bidyut Company led the turnover chart, with transactions worth Rs 578.5 million. The stock has been drawing heightened investor interest in recent sessions, particularly within the hydropower segment.
It was followed closely by SY Panel, which recorded turnover of Rs 570 million. Aankhu Khola Hydropower saw trades worth Rs 510 million, while Nyadi Group posted turnover of Rs 390 million. Bandipur Cable Car also featured among the top traded stocks, with transactions totaling Rs 370 million.
Sector-wise performance showed widespread declines. Out of the 13 sub-indices, 12 ended in the red, while one remained unchanged, underscoring the extent of the market correction.
The Banking sub-index fell by 1.49 percent, reflecting pressure on commercial bank stocks, which typically carry heavy weight in the benchmark index. The Development Bank sub-index dropped by 1.00 percent, while the Finance sub-index declined by 2.44 percent, indicating losses across broader financial institutions.
The Hotels and Tourism sub-index decreased by 1.90 percent, mirroring selling pressure in tourism-linked stocks. Meanwhile, the Hydropower sub-index fell by 1.47 percent, despite several hydropower companies being among the top turnover leaders.
Market observers noted that the decline comes after recent gains, suggesting a phase of technical correction. Investors appeared cautious amid short-term valuation concerns and sector-specific profit-taking. The concentration of trading in a few mid-cap stocks also signaled speculative activity within selected counters.
Despite the drop, turnover above Rs 14 billion signals continued liquidity in the market. Analysts say upcoming corporate disclosures, monetary policy signals, and broader macroeconomic developments could influence investor sentiment in the sessions ahead.
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