The Nepal Stock Exchange (Nepse) benchmark index fell nearly 2% last week, erasing approximately Rs 90 billion in market capitalization in a broad-based sell-off.
The decline was universal, with all 13 sectoral indices closing in the red, indicating that selling pressure was not confined to specific industries but reflected a wider loss of confidence among investors.
Despite the sharp drop in valuations, trading turnover increased during the period, suggesting that the decline was driven by active distribution rather than a lack of liquidity.
This divergence between price and volume often signals a shift in sentiment, where buyers are stepping back while sellers remain aggressive.
Market analysts cited in local reporting expect the selling pressure to ease in the coming sessions.
They point to potential policy support and stabilizing macroeconomic conditions as factors that could improve investor sentiment and halt the downward trajectory.