NEPSE Slides Over 1.5% as Broad-Based Sector Selloff Weighs on Market

Nepal’s equity market extended its decline on Magh 13, 2082, as widespread losses across sectoral indices pushed the benchmark NEPSE index down by 42.58 points, or 1.53%, to close at 2,726.51.

Investor sentiment remained weak throughout the session, with all major sectors—except mutual funds—ending in negative territory. The finance sector led the losses, plunging 2.42%, reflecting continued pressure on non-banking financial institutions amid cautious investor positioning.

Insurance stocks also came under heavy selling. The life insurance sub-index fell 1.85%, while non-life insurance dropped 1.74%, erasing recent gains as investors booked profits in high-beta stocks.

The hotels and tourism sector declined 1.90%, signaling concerns over near-term earnings momentum, while manufacturing and production stocks slid 1.40%. Development banks and microfinance companies also closed lower, shedding 1.00% and 1.43% respectively.

Hydropower stocks, often viewed as defensive plays, failed to provide support, falling 1.41%. Banking stocks slipped 1.49%, tracking the broader market weakness, while trading companies and investment firms recorded moderate losses.

The only sector to remain unchanged was mutual funds, which closed flat, suggesting limited activity in institutional-linked instruments.

Market participants cited profit-taking, lack of fresh triggers, and cautious positioning ahead of upcoming financial disclosures as key reasons behind the broad-based selloff. Analysts note that near-term market direction will likely depend on liquidity conditions, quarterly earnings clarity, and overall investor confidence.