NEPSE falls 12.58 points; Rs 8.63 billion turnover as finance stocks lead losses

KATHMANDU: Nepal’s secondary market declined by double digits on Tuesday, with the NEPSE index dropping 12.58 points to close at 2,683.15, reflecting broad-based selling pressure across most sectoral indices amid continued volatility in the domestic equity market.

Trading data show that the market downturn was widespread, as all sub-indices except Hotels & Tourism, Manufacturing & Processing, and Mutual Funds ended in negative territory.

The Finance sub-index recorded the steepest decline, falling 1.09 percent, making it the worst-performing sector of the day. Market analysts interpret the slide in finance stocks as indicative of investor caution toward smaller financial institutions amid tightening liquidity conditions and credit risk concerns in the broader financial system.

Out of the traded companies, 190 firms saw their share prices decline, underscoring the dominance of bearish sentiment. Among individual stocks, Sanvi Energy’s share price fell by 4.63 percent, placing it among notable losers in the hydropower segment, which has recently experienced price volatility driven by profit booking and sector rotation.

Despite the overall decline, 66 companies managed to post gains, indicating selective buying interest. Kalinchowk Darshan Limited hit a positive circuit, meaning its share price surged to the maximum daily permissible limit, suggesting strong demand from investors in select tourism and hospitality-linked equities.

High Market Liquidity Despite Decline

Even as the index fell, trading activity remained robust. The total daily turnover reached Rs 8.63 billion (Rs 8,63,15,00,000), signaling sustained investor participation and active portfolio reshuffling.

The highest transaction volume was recorded in SY Panel, with shares worth Rs 592.9 million changing hands, making it the top-traded stock by turnover. Similarly, Aankhu Khola Hydropower Company witnessed significant activity, with Rs 410 million worth of shares traded during the session. High turnover in these counters suggests concentrated investor interest in specific mid-cap and hydropower stocks despite broader market weakness.

Sectoral and Sentiment Overview

The day’s correction indicates a pause in the recent upward momentum seen in parts of the market, with investors appearing to lock in gains after previous rallies. The divergence between advancing and declining stocks shows that while the broader index weakened, selective sectoral positioning and stock-specific movements continue to shape trading patterns.

The resilience in Hotels & Tourism and Manufacturing & Processing sub-indices suggests investor expectations of sectoral recovery, while mutual funds’ relative stability points to defensive positioning by institutional and retail investors seeking diversified exposure.

Market participants are now closely watching liquidity trends, banking sector performance, and macroeconomic signals, including interest rate direction and credit growth, which are likely to influence near-term movement in the NEPSE index.