Banking News — Nepal’s stock market has continued its downward trend, with the Nepal Stock Exchange (NEPSE) index losing 128 points over the past month, raising concerns among investors amid declining market activity and shrinking trading volumes.

According to NEPSE data, the benchmark index dropped from 2,777 points on Jestha 12 to 2,649 points on Asar 12, reflecting a steady decline over the one-month period and pushing the market below the 2,700-point mark.

Market activity has also weakened significantly. Daily turnover, which exceeded Rs 21 billion on Falgun 26, has fallen sharply to around Rs 2 billion by Asar 12. In recent trading sessions, the market has struggled to record even Rs 2–3 billion in daily transactions, indicating reduced investor participation.

The bearish trend intensified during the latest trading week, with the NEPSE index declining 51 points. The market closed lower on all five trading days of the week, highlighting persistent selling pressure and weakening investor confidence.

As the market continues to slide without showing signs of recovery, many investors have adopted a “wait-and-watch” approach, reflecting growing uncertainty over the near-term outlook.

The prolonged market decline has also reduced overall market capitalization. During the review period, total market capitalization fell from approximately Rs 4.73 trillion to Rs 4.53 trillion, representing a decline of around Rs 200 billion.

Earlier this month, on Asar 9, the NEPSE index stood at 2,674 points, marking its lowest level in four months. On that day alone, the benchmark index dropped 26.16 points, falling below the psychologically important 2,700-point level. Since then, both the index and trading volume have continued to decline.

Market analysts say the sustained correction, coupled with weak liquidity and cautious investor sentiment, has kept Nepal’s secondary market under pressure, with participants closely watching for economic and policy developments that could restore confidence.