Nepal’s stock market pulled back on Tuesday after one of its biggest single-day surges in recent memory.
NEPSE closed at 2,843.35 on March 10, down 32.08 points or 1.11 percent from the previous session. The correction came a day after the index exploded 162.93 points, a 6 percent surge driven by post-election euphoria following the RSP’s strong general election victory. Monday’s rally was so sharp it triggered three successive positive circuit breakers and shut the market down after barely an hour of trading.
Tuesday was the market catching its breath.
Why the Pullback After Such a Big Surge?
Profit-booking was the clear driver. Investors who rode Monday’s wave locked in gains quickly, pushing the index from an intraday high of 2,911.36 all the way down to a low of 2,796.13 before it recovered slightly to close at 2,843.35. That is a 115-point swing within a single session, a sign of how volatile markets get in post-election phases when sentiment shifts faster than fundamentals.
The broader indices followed. The Sensitive Index fell 0.89 percent to around 489.69, and the Float Index dropped 1.12 percent. Of 329 companies traded, 178 declined, 78 advanced, and 5 stayed flat. Trading sector stocks took the hardest hit at 2.12 percent down, followed by Finance at 2.06 percent. Mutual Funds bucked the trend with a 1.34 percent gain, joined by Life Insurance at 0.51 percent and Non-Life Insurance at 0.38 percent.
Reliance Spinning Mills Limited was the lone upper circuit stock of the day, showing selective strength in the textile sector while the broader market bled.
The Number That Actually Matters
Despite the red session, turnover hit Rs 21.50 billion, the highest in seven months since around July 2025. Total volume reached 52,711,353 units across 205,611 transactions. Market capitalization stood at Rs 4.783 trillion.
High turnover during a correction tells you the market is active, not panicking. Retail and institutional investors are both engaged, which points to sustained interest rather than a sentiment collapse.
What to Watch This Week
NEPSE has climbed significantly from the 2,674 to 2,712 range it was trading at in early March. Tuesday’s dip is a normal reset after a sharp move, not a reversal signal. Political stability optimism around the new RSP government remains the underlying fuel.
Key things to track from March 11 onward: further profit-taking pressure, Shikhar Power IPO allotment results, and any early policy signals from the incoming government on investment and margin trading. SEBON is also reportedly reviewing circuit breaker thresholds after Monday’s triple halt, which could change how future rallies and corrections play out.
Track live indices and floorsheet data on Merolagani.com or nepalstock.com.
Also Read: Shikhar Power IPO Sets Record with 2.76 Million Applicants, Highest in Nepal’s IPO History
