Kathmandu— The Nepal Stock Exchange (NEPSE) witnessed a mild correction on Wednesday, ending a continuous upward trend seen since the beginning of the week. The benchmark index declined by 9.43 points to close at 2,705.38 points.
The market had been rising steadily after the confirmation of the House of Representatives elections scheduled for March 5. Candidate nominations were registered across the country on Tuesday, and despite the election atmosphere, the stock market had continued to show positive momentum.
Market participants say investor sentiment has remained optimistic, driven by expectations of political stability after the elections, the formation of a market-friendly government, and broader reforms aimed at stock market development. As a result, many investors have begun increasing their exposure to equities.
Share investor Om Prakash Sharma said that he has started expanding his investments even amid the election period. He noted that the current correction has strengthened confidence in the market’s long-term direction. According to him, a sudden and unchecked rise ahead of elections would have posed risks, but gradual growth accompanied by periodic corrections indicates healthier and more sustainable market movement.
During Wednesday’s trading session, the NEPSE index initially rose by double digits before reversing course and closing in negative territory. The market turned bearish after the share prices of 174 listed companies declined. Along with the benchmark index, the Sensitive Index also fell by 1.35 points.
On the same day, share prices of 82 companies increased, while prices of two companies remained unchanged. Kalika Power and Narayani Development Bank recorded gains of up to 9 percent, according to NEPSE data.
Most sectoral indices ended the session in the red. The banking group declined by 2.25 points, development banks by 34.62 points, finance by 43.28 points, hotels by 140.33 points, hydropower by 1.15 points, investment by 0.68 points, life insurance by 47.88 points, manufacturing by 42.97 points, microfinance by 12.77 points, mutual funds by 0.13 points, non-life insurance by 33.68 points, and the trade group by 52.40 points. Only the ‘others’ group posted a gain, rising by 6.34 points.
Trading activity also weakened alongside the index. A total of 21.64 million shares of 324 companies were traded through 89,766 transactions, generating a turnover of Rs 8.92 billion. This represents a sharp decline compared to Tuesday’s trading volume of approximately Rs 12.5 billion.
Market analysts say the decline in both index and turnover reflects short-term profit booking after recent gains, rather than a reversal of the broader upward trend.
