NEPSE slips below 2,700, hits nearly four-month low

The stock market extended its losing streak for a second consecutive session on Tuesday, with the Nepal Stock Exchange (NEPSE) index falling by 26.16 points to close at 2,674.48. The index has now dropped to its lowest level in nearly four months, reflecting sustained selling pressure across most sectors.

Trading sentiment remained weak throughout the day, with the majority of the session spent in negative territory. Market turnover also eased slightly, declining to around NRs 4.36 billion from the previous day’s NPR 4.44 billion.

Sector-wise, all indices except mutual funds ended in the red. The production and processing group led losses with a 1.92% decline, while hydropower, hotels and tourism, banking, finance, investment, life and non-life insurance, and trading sectors also posted losses.

Market breadth was strongly negative, with 239 companies declining, 22 advancing, and 11 remaining unchanged. Hydropower stocks were particularly pressured. Bungal Hydropower hit a negative circuit, while other hydropower-related stocks such as Apollo Hydropower also saw sharp declines.

In contrast, newly listed companies Taksar Pikhuwakhola Hydropower and Yambaling Hydropower hit positive circuit limits, rising 15% each.

On the turnover side, Aankhu Khola Hydropower recorded the highest trading volume of the day, followed by Sopan Pharmaceuticals, Reliance Spinning Mills, and NRN Infrastructure.

Analysts noted that persistent selling pressure, combined with weak investor sentiment, pushed the index below the psychologically important 2,700 level. The arrest of former finance minister Bishnu Paudel on Monday potentially added to investor caution.