Kathmandu-The Nepal Stock Exchange (NEPSE) opened the week on a negative note, with the benchmark index declining by 26.29 points on  Monday, first trading day, to close at 2,627.11 points. In the previous session, the market had declined 8.30 points.

Market breadth remained negative on Monday, with the share prices of 34 companies advancing while 239 companies declined. A total of 8.58 million shares of 345 listed companies changed hands through 46,234 transactions, generating a turnover of Rs 3.557 billion, down from Rs 4.41 billion recorded in the previous session.

Among individual stocks, Snow Rivers Limited, Kalanga Hydro Limited, and Sanigad Hydro Limited,  hit the positive circuit limit. On the downside, Three Star Hydropower Limited  recorded the steepest fall, dropping 13.79 percent.

In terms of turnover, 8.5%  Nepal Investment Bank Debenture 2084 topped the list with transactions worth approximately Rs. 539. 452 million.

Sector-wise, all 13 sub-indices ended in the red. The trading  sub-index recorded the largest decline, falling 3.15 percent.

The stock market has continued to struggle in recent weeks. Although the Balendra Shah-led government is approaching its first 100 days in office, the capital market has yet to witness the momentum many investors had anticipated.

Investor expectations had risen following the appointment of experienced economists to key economic institutions, including Finance Minister Dr. Swarnim Wagle, National Planning Commission Vice Chairman Dr. Gunakar Bhatta, Nepal Rastra Bank Governor Dr. Bishwa Poudel, and Nepal Securities Board Chairman Dr. Gopal Bhatta. Market participants expected clearer economic policies and stronger support for the capital market. However, concerns over fiscal tightening have dampened investor sentiment.

The market continues to face pressure from a slowing economy, subdued private sector investment, and expectations of increased IPO supply. Uncertainty surrounding the proposed bill on banks and financial institutions, along with policy debates on separating bankers from business ownership, has further weakened investor confidence and limited fresh investment.

Although investors remain hopeful that expert leadership will deliver meaningful capital market reforms and investment-friendly policies, those expectations have yet to translate into tangible improvements in market performance.