Kathmandu-The Nepal Stock Exchange (NEPSE) index, which has been experiencing volatility in recent times, closed lower today.

On Monday, the first trading day of the week after budget speech, the NEPSE index fell by 26.72 points compared to the previous trading day, closing at 2,755.72 points. 

Along with the decline in the index, trading turnover also decreased. Today, shares of 349 companies totaling 13,383,816 units were traded through 63,719 transactions, generating a turnover of Rs 5.61 billion.

During today's trading, shares of Kalinchowk Hydropower Limited and Nepal Reinsurance Company Limited hit the positive circuit limit. In terms of trading value, Aankhu Khola Jalvidyut Company Limited recorded the highest turnover, with shares worth  Rs 420.4 million traded.

Out of the market's sectoral indices, only two sub-indices gained, while eleven sub-indices declined. The 'Others' sub-index posted the highest gain, rising by 3.36 percent..

Investors who anticipated of stock market's improvement following the budget announcement remain uncertain, as the market has not gained fresh momentum even after the presentation of the first budget under the new government.

Today's trading session has created further uncertainty for investors who were expecting the market to rise. Through the budget, Dr. Swarnim Wagle increased the tax rate for investors by 2.5 percentage points. As a result, confusion and concern have arisen among small and retail investors.

A dynamic capital market not only strengthens investor confidence but also boosts overall economic activity and sends positive signals throughout the economy.