The Nepal Stock Exchange (NEPSE) witnessed a sharp decline on Sunday, the first trading day of the week, as the benchmark index plummeted by 78.83 points (3.05%), closing at 2,503.35 points. The market remained under heavy selling pressure throughout the day, with all major sectors closing in the red.

At one point during the session, the NEPSE index dropped to 2,493 points at 1:08 PM, marking the lowest level of the day. Despite the decline, total market turnover increased significantly, reaching Rs 6.70 billion, compared to Rs 5.27 billion recorded on Thursday.

Out of 324 listed companies, 242 saw a decline in their share prices, while only 9 companies gained, and none remained unchanged.

The hotel and tourism sector led the decline, plunging 4.84 percent, followed closely by the others group (4.79%), hydropower (3.79%), finance (3.67%), investment (3.13%), development banks (2.93%), microfinance (2.88%), trading (2.85%), non-life insurance (2.32%), banking (2.30%), life insurance (2.55%), and manufacturing and processing (1.94%).

Among the top gainers, Nepal Micro Insurance Company Limited (NMIC) rose by 6.01 percent to close at Rs 1,182 per share, followed by Panchakanya Mai Hydropower (PMHPL) with a 4.90 percent rise and Crest Micro Life Insurance (CIZBD90) gaining 1.89 percent.

On the losing side, Butwal Power Company (BPCL) saw the steepest fall of 9.27 percent, while Nepal Reinsurance Company (NRIC) declined 9.15 percent, Radhi Hydropower (RHPC) fell 8.50 percent, CEDB Hydropower Holdings (CHDC) dropped 8.45 percent, and Bindhyabasini Hydropower (BHPL) lost 8.27 percent.

In terms of trading volume, Nepal Reinsurance Company, NLG Insurance, Union Hydropower, Himalayan Reinsurance, and CEDB Hydropower Holdings led the market.

According to NEPSE data, 67,202 transactions were recorded, involving the trade of 14.36 million shares. The total market capitalization stood at Rs 4.18 trillion, while the float market capitalization amounted to Rs 1.42 trillion.

Market analysts attribute today’s fall to profit-booking pressure, cautious investor sentiment following recent rallies, and concerns over liquidity and interest rate trends. Despite the downturn, the rise in turnover suggests that investor activity remains strong, with traders shifting focus toward selective buying opportunities amid the broader correction.