The Hotels and Tourism Index on the Nepal Stock Exchange witnessed a notable decline on Tuesday, dropping by 144.83 points (1.85%) to close at 7,648.23, following the previous session’s sharp rally in the market.
The sectoral index had recorded a strong surge in the earlier trading session, when the broader market experienced a significant jump of more than 6 percent, triggering an early closure of trading for the entire day under the exchange’s circuit breaker rule.
Hotels and Tourism Sector Sees Correction
During Tuesday’s trading session, the Hotels and Tourism Index opened at 7,865.64 and reached an intraday high of 7,865.63. However, selling pressure pushed the index downward, with the sector touching an intraday low of 7,555.76 before settling at 7,648.23 by the end of the trading day.
Market analysts say the decline likely reflects profit-booking by investors following the previous day’s rapid market rally. The hotels and tourism sector had been among the segments that benefited from the earlier surge, prompting some investors to secure gains in the latest session.
NEPSE Index Also Slips After Record Surge
The benchmark Nepal Stock Exchange index also moved downward on Tuesday, falling by 32.08 points (1.11%) to close at 2,843.35. The decline came just a day after the market recorded an extraordinary 6 percent surge, which triggered an automatic trading halt as per NEPSE’s circuit breaker rules. That rapid rise forced the exchange to suspend trading early for the rest of the day.
Trading Session Performance
On Tuesday, the benchmark index opened at 2,911.37 and climbed to an intraday high of 2,911.36 in the early phase of trading. However, the market gradually lost momentum during the day, eventually reaching a low of 2,796.13 before recovering slightly to close at 2,843.35. The session reflected a typical market correction following a strong rally, with investors adjusting their positions and booking profits.
Strong Trading Activity Continues
Despite the decline in the index, trading activity remained strong across the market. The total daily turnover reached approximately Rs. 21.50 Arba, indicating continued investor participation.
A total of 52,711,353 shares were traded during the session. These shares belonged to 329 listed companies and were exchanged through 205,611 transactions, highlighting active market engagement. Market observers note that high turnover levels suggest sustained investor interest even as the market undergoes short-term corrections.
Market Capitalization Snapshot
Following Tuesday’s trading session, the total market capitalization of the Nepal Stock Exchange stood at approximately Rs. 47.83 Kharba. Meanwhile, the float market capitalization, which represents the value of shares available for public trading, was recorded at Rs. 16.33 Kharba. These figures reflect the overall value of companies listed on the stock exchange and provide insight into the scale of Nepal’s equity market.
Investors Remain Watchful
Market analysts say investors are closely monitoring the market’s direction following the extraordinary surge seen in the previous session. While short-term corrections are common after rapid price increases, sustained investor interest and high trading volumes suggest that the market remains active.
Experts also point out that sectoral indices, including hotels and tourism, may continue to experience fluctuations as investors rebalance portfolios and respond to market momentum. With strong turnover and continued participation from both retail and institutional investors, the coming trading sessions will determine whether the market stabilizes or experiences further volatility after the recent dramatic movements.
