The Nepal Stock Exchange (NEPSE) Index closed lower on Tuesday, shedding 9.43 points, or 0.34 percent, to settle at 2,705.38 points. The decline comes after a strong rally in the previous trading session, during which the benchmark index had gained 42.26 points, indicating a phase of profit booking by investors.
The market opened at 2,717.43 points and moved within a wide range throughout the day. It touched an intraday high of 2,728.05 points before slipping to a day’s low of 2,695.10 points, reflecting volatility amid mixed investor sentiment.
Turnover Remains Robust
Despite the decline in the benchmark index, trading activity remained robust, suggesting continued investor participation. The total daily turnover reached Rs. 8.92 Arba, with 21,641,883 shares changing hands across 324 listed companies through 89,766 transactions.
Market capitalization stood at Rs. 45.42 Kharba, while float market capitalization was recorded at Rs. 15.48 Kharba, underscoring the overall scale of Nepal’s capital market despite short-term fluctuations.
Market analysts noted that the relatively high turnover amid a modest index decline indicates that investors remain active but cautious, opting to lock in gains after the recent upward momentum.
Sectoral Performance Mixed
Sector-wise performance was largely mixed, with gains in a few sectors offset by losses in others. The Others Index emerged as the top gainer, registering an increase of 0.26 percent, reflecting selective buying interest in non-core sectors.
In contrast, the Hotels and Tourism Index recorded the highest loss, declining by 1.88 percent, as investors pulled back from tourism-related stocks following recent gains. The sector’s decline weighed on the overall market performance.
Hotels and Tourism Index Sees Sharp Decline
The Hotels and Tourism Index dropped by 140.33 points, closing at 7,288.25 points. This decline followed a gain in the previous session, suggesting a correction after short-term buying interest.
The sectoral index opened at 7,424.27 points, reached an intraday high of 7,464.23 points, and fell to a low of 7,277.44 points during the trading session. The wide trading range reflects heightened volatility within the tourism sector, which has been sensitive to earnings expectations, seasonal demand, and broader market movements.
Investor Sentiment and Market Outlook
Market participants attributed Tuesday’s downturn primarily to profit-taking, particularly in sectors that had seen strong gains in recent sessions. While some investors chose to reduce exposure, others selectively accumulated stocks at lower levels, keeping overall turnover at a healthy level.
Analysts said that the broader market trend remains cautiously optimistic, supported by improving liquidity, steady participation from retail investors, and expectations of positive earnings growth in certain sectors. However, they warned that short-term volatility may persist due to global economic uncertainties, domestic policy expectations, and technical resistance levels around the current index range.
Technical Perspective
From a technical standpoint, the NEPSE index continues to hover around a key psychological level, with support seen near the 2,700-point mark. A sustained hold above this level could encourage renewed buying interest, while a break below it may lead to further consolidation.
Market observers emphasized that investors should focus on fundamentals, earnings performance, and sectoral strength, rather than short-term market movements, particularly in a fluctuating environment.
The Nepal Stock Exchange closed marginally lower amid mixed sectoral performance and active trading. While the benchmark index slipped due to profit booking, strong turnover indicated continued confidence among investors. With selective buying and selling shaping the market, experts expect range-bound movement in the near term, as investors closely watch economic indicators, corporate earnings, and policy developments.
