On Thursday, the Nepse index, which had shown slight recovery, came under renewed pressure on Friday. The benchmark index fell by 8.14 points to close at 2,728.03.

Market analysts say the decline reflects increased selling pressure after a brief recovery session, as investors engaged in profit booking.

Trading activity also declined. The market, which recorded a turnover of Rs. 4.29 billion on Wednesday, dropped to Rs. 3.90 billion on Thursday. Around 9.2 million shares were traded through more than 58,000 transactions across 350 listed companies.

Sector-wise, 11 out of 13 sub-indices closed in the red, while only Hotels & Tourism and Manufacturing & Processing ended slightly positive.

Sopana Pharmaceuticals and Apollo Hydropower hit positive circuit limits during the session. However, Saptakoshi Development Bank faced the sharpest decline, falling by 13.51%.

Overall, short-term volatility, profit booking, and weakness in selective sectors dragged the market lower again.