Nepal’s stock market witnessed another day of losses on Thursday as both the broader market and the tourism sector closed lower, reflecting continued cautious investor sentiment across major sectors. The NEPSE Index and the Hotels and Tourism Index both recorded declines, extending losses from the previous trading session. Market analysts said weaker momentum in key sectors, particularly tourism-related stocks, contributed to the downward movement as investors remained cautious despite moderate trading activity.
Hotels and Tourism Sector Sees Consecutive Decline
The Hotels and Tourism Index recorded a notable decline during Thursday’s trading session, falling by 39.80 points, or 0.53 percent, to close at 7,424.41 points. The sector had already witnessed a drop of 47.09 points in the previous trading session, indicating back-to-back losses for tourism-related companies listed on the exchange.
During intraday trading, the tourism index opened at 7,428.49 points and moved within a narrow trading range. It reached an intraday high of 7,511.49 points before slipping to a low of 7,375.99 points and eventually settling lower at market close. The decline signals continued pressure on hospitality and tourism-related stocks, a sector closely watched by investors amid Nepal’s growing tourism recovery and increasing travel activity.
Broader NEPSE Index Also Ends in Red
The overall Nepal Stock Exchange (NEPSE) also closed lower, continuing its negative trend for the second straight session. The benchmark index dropped by 8.50 points, or 0.31 percent, closing at 2,651.52 points after losing 14.45 points in Wednesday’s trading session.
The market opened at 2,656.30 points and experienced moderate fluctuations throughout the day. During trading hours, the benchmark index touched an intraday high of 2,663.47 points, while falling to a low of 2,643.59 points before ending the session in negative territory. Market participants said the decline reflected cautious investor behavior as buying pressure remained relatively weak across multiple sectors.
Trading Turnover Crosses Rs 2.83 Billion
Despite the market decline, trading activity remained relatively active throughout the session. According to NEPSE data, the total daily turnover reached approximately Rs 2.83 billion, indicating continued investor participation even as the market remained under pressure. A total of 6,480,599 shares were traded during the day involving 338 listed companies.
The transactions were executed through 46,751 individual trades, reflecting stable market activity despite the broader decline in stock prices. Analysts noted that although turnover remained healthy, the absence of strong buying momentum prevented the market from reversing its downward trend.
Market Capitalization Stands Above Rs 45 Trillion
Following Thursday’s decline, Nepal’s overall stock market valuation remained substantial. The total market capitalization of NEPSE stood at approximately Rs 45.38 trillion, highlighting the overall size of Nepal’s equity market. Meanwhile, the float market capitalization, which represents shares actively available for public trading, stood at Rs 15.29 trillion. Market capitalization figures remain an important indicator of overall investor confidence and market strength despite short-term price fluctuations.
Investors Watching Sector Performance Closely
The back-to-back decline in both the broader market and the Hotels and Tourism Index comes at a time when investors are closely monitoring sectoral performance amid evolving economic conditions. Tourism-related stocks have attracted growing attention in recent months due to Nepal’s improving tourism arrivals and the hospitality sector’s recovery momentum.
However, Thursday’s decline suggests investors remain cautious, with market participants carefully evaluating short-term risks and broader economic signals before increasing exposure. Financial analysts say market movement in the coming sessions will largely depend on sector-specific buying activity, investor confidence, and broader economic sentiment. With both NEPSE and tourism stocks extending losses for the second consecutive day, investors are expected to closely watch whether the market can regain momentum in the upcoming trading sessions.
