KATHMANDU: The Nepal Stock Exchange (NEPSE) index plunged by 35.73 points (1.32%) on Tuesday, closing at 2,658.93, reversing recent gains seen on Monday and last Wednesday.

The market saw a significant decline in turnover as well, with total trading volume dropping to Rs 6.67 billion, down from Rs 9.22 billion the previous day, signaling reduced investor participation.

Of the traded companies, only 34 gained, while 214 declined, underscoring broad-based selling pressure. The downturn is largely attributed to profit-taking amid ongoing political uncertainty, which has dampened investor sentiment.

All sectoral indices ended in the red, with banking falling the most at 2.34%, followed by hotels & tourism (2.12%), trading (1.37%), and investment (1.29%). Other sectors such as hydropower, microfinance, and development banks also posted losses between 0.9% and 1.2%.

Despite the market slump, Om Megashree Pharmaceuticals and Pure Energy surged by the daily limit of 10%, while Upakar Laghubitta and Narayani Development Bank gained 5.58% and 3%, respectively.

On the losing end, Saptakoshi Development Bank dropped the most at 4.38%, followed by sharp declines in Barahi Hydropower, Prime Commercial Bank, and Laxmi Sunrise Bank.

In terms of trading volume, Radhi Bidyut, Universal Power, Ngadi Group, Om Megashree, and Butwal Power led the market.