Kathmandu-The Nepal Stock Exchange (NEPSE) index dropped sharply on Wednesday, declining by 46.78 points to close at 2,796.57.

The daily turnover, which had reached a seven-month high of Rs 21.5 billion on Tuesday, fell to Rs 13.18 billion on Wednesday.

Among other indices, the Sensitive Index increased slightly by 1.69 points, while the Float Index declined by 1.65 points and the Sensitive Float Index decreased by 1.76 points.

Shares of Salpa Bikas Bank hit the positive circuit level, making it one of the top gainers of the day.

Based on trading volume, shares of Ridi Power Company Limited recorded transactions worth Rs 859.5 million, while trading in National Hydropower Company exceeded Rs 495 million.

Out of the 13 trading subgroups, only one subgroup recorded gains, while 12 subgroups declined. The Trading subgroup posted the largest loss, falling by 3.40 percent.

Meanwhile, recent election results have provided fresh momentum to the stock market, which had remained relatively stable for a long period. Investors appear optimistic, as the strong mandate received by new political forces—seen as alternatives to traditional parties—has raised expectations of economic reforms, improved governance, and structural changes in the country’s economy.