The Hotels and Tourism Index witnessed another sharp decline on Wednesday, falling by 132.50 points (1.64 percent) to close at 7,903.05. The drop marks the second consecutive day of triple-digit losses for the sector, following a steeper fall of 211.21 points in the previous trading session.
Market analysts attribute the continued decline to investor caution in tourism-related stocks, amid broader market uncertainty and subdued sentiment in the hospitality segment. During the day’s trading, the index opened at 8,035.57 and climbed to an intraday high of 8,055.39 before slipping to a low of 7,870.61, reflecting volatility throughout the session.
Nepal Stock Exchange Records Broader Market Loss
The broader benchmark index of the Nepal Stock Exchange (NEPSE) also closed in negative territory, declining by 25.81 points (0.93 percent) to settle at 2,744.45. This follows a similar double-digit loss of 26.16 points recorded in the previous trading day, indicating sustained bearish momentum in the market.
The NEPSE index opened at 2,771.25 and reached an intraday high of 2,774.16 before dropping to a low of 2,734.33. The movement suggests a cautious trading pattern, with selling pressure outweighing buying interest as the session progressed.
Trading Activity and Market Performance
Despite the decline in indices, market activity remained relatively strong. Total turnover for the day stood at Rs. 4.98 Arba, with a total of 12,134,360 shares traded. These transactions were carried out across 351 listed companies through 104,005 individual trades, indicating continued participation from investors despite the downward trend. The total market capitalization of NEPSE reached Rs. 46.80 Kharba, while the float market capitalization stood at Rs. 15.59 Kharba.
Investor Sentiment Remains Cautious
Market observers note that the back-to-back losses in both the tourism index and the broader NEPSE reflect cautious investor sentiment. The hospitality and tourism sector, which is often sensitive to external economic and geopolitical factors, appears to be under particular pressure. While trading volumes suggest that investors are still active, the consistent decline in indices indicates a wait-and-watch approach, with many opting to reduce exposure amid short-term uncertainties.
Analysts suggest that the market direction in the coming days will largely depend on investor confidence, sectoral performance, and broader economic indicators. The tourism sector, in particular, may require positive triggers, such as improved travel outlooks or stronger earnings reports, to regain momentum. For now, both the Hotels and Tourism Index and the NEPSE benchmark remain under pressure, signaling a cautious phase for Nepal’s stock market.
