The Nepal Stock Exchange (NEPSE) witnessed a correction on Tuesday after surging sharply the previous day. The NEPSE Index dropped by 32.08 points to close at 2,843.35.
Before the election, the index had risen continuously for six trading days, and on Monday it jumped by 162 points, hitting the 6 percent upper circuit. Following that sharp rise, the market entered a correction phase on Tuesday.
Although the index had increased by 35 points during the pre-open session, it failed to sustain the upward momentum once regular trading began. The market fluctuated throughout the day but largely remained in negative territory.
During the session, the index reached a high of 2,911.37 points and a low of 2,796.97 points. Despite some recovery toward the end, the market closed with a double-digit decline.
Even though the index dropped, trading volume reached the highest level in the last eight months. Investors had last recorded transactions worth Rs 26 billion on Shrawan 8, while daily trading since then had remained below Rs 10 billion. On Tuesday, investors traded shares worth around Rs 21.5 billion.
On Monday, the market had reacted positively as vote counting neared completion and the formation of a new government appeared certain. The index had risen 6 percent within three short trading intervals, leading to an early closure of the market that day, though trading volume remained relatively low.
On Tuesday, however, both profit-booking sellers and new buyers were active, leading to a significant increase in turnover. Within the first 21 minutes of trading, transactions had already crossed Rs 6 billion.
Out of 329 companies traded, share prices of 178 companies declined, while 78 companies recorded gains. The prices of five companies remained unchanged.
Among the gainers, Reliance Spinning Mills hit a positive circuit, while Salapa Bikas Bank and Three Star Hydropower also reached circuit-level gains.
On the losing side, Himstar Energy Company recorded the largest drop, with its share price falling 6.36 percent.
The highest turnover of the day was recorded by Ngadi Group Power Company, with transactions worth about Rs 1.09 billion. High investor interest was also seen in Aankhu Khola Jalvidyut Company and API Power Company.
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