Stocks slide sharply a day after new monetary policy introduced

The stock market fell sharply on Wednesday as investors reacted to the central bank's newly announced monetary policy. The benchmark NEPSE index dropped 30.09 points to close at 2,621.59, erasing the previous session's 24-point gain.

The decline was broad-based, with all sector indices except mutual funds ending lower. Hydropower stocks led the losses, falling 1.70%, while banking, development banks, finance, hotels and tourism, insurance, manufacturing, microfinance, investment, trading and other sectors also closed in negative territory.

Out of the companies traded, 247 declined, 25 advanced and five remained unchanged. Corporate Development Bank posted the steepest loss, tumbling 13.41%, while Snow Rivers recorded the biggest gain among listed companies. NMB Debenture 8.50% 2087/88 was the best-performing debt security, rising 5.52%.

Trading activity increased despite the market downturn. Daily turnover climbed to NRs 4.83 billion from NRs 4.40 billion a day earlier, with investors showing strong interest in debentures. Kumari Bank's 10% KBL Debenture 2089 recorded the highest turnover at NRs 623.9 million, followed by 9.5% NCC Debenture 2086 and 8.5% Sanima Debenture.