The Hotels and Tourism Index witnessed a sharp decline in today’s trading session, dropping by 173.81 points (2.23%) to close at 7,587.32, reversing the previous session’s gain of 62.36 points. The steep fall reflects growing selling pressure in the tourism-linked stocks despite recent political developments that had raised investor expectations.
Sharp Decline in Hotels & Tourism Sector
The index opened at 7,762.84 and briefly climbed to an intraday high of 7,767.46 before losing momentum. It later fell to a low of 7,565.18, indicating sustained selling throughout the trading hours.
Market analysts suggest that investors engaged in profit booking, leading to the downturn. Despite optimism following the formation of a new government, the sector failed to sustain positive momentum, highlighting cautious investor sentiment.
NEPSE Falls by 71 Points
The broader benchmark index, NEPSE, also recorded a significant loss, declining by 71.05 points (2.40%) to close at 2,879.11.
The index opened at 2,958.78, which also remained the day’s high at 2,958.79, before sliding steadily to hit a low of 2,872.99 during intraday trading.
Market Activity and Turnover
Despite the decline, market activity remained strong. The total turnover reached Rs. 15.03 Arba, with:
- 35.24 million shares traded
- 333 companies involved
- 196,158 transactions recorded
The overall market capitalization stood at Rs. 48.88 Kharba, while the float market capitalization was recorded at Rs. 16.51 Kharba.
Investor Sentiment Remains Cautious
The market had shown signs of optimism following the formation of the new government, with expectations of a bullish trend. However, the opposite movement suggests that investors remain cautious, possibly awaiting clearer policy direction and economic signals.
The decline across both the Hotels and Tourism Index and the broader market indicates that short-term profit booking and uncertainty are currently outweighing positive sentiment.
