Kathmandu-The Nepal Stock Exchange (NEPSE), which had experienced a sharp decline on first trading day, bounced back on Monday. 

The NEPSE index, which plunged by  105.50 point on Sunday, recovered by 83.33 points to close at 2,760.02. Share prices of 264 companies increased, while three declined and one remained unchanged. 

Despite the market rebound, daily turnover dropped to Rs 10.928, billion on Monday, down from Rs 12.389 billion recorded on Sunday.

During Tuesday’s trading session, shares of four companies—Upakar Laghubitta Bittiya Sanstha Limited, Bhujung Hydropower Limited, and Ridi Power Company Limited—hit the positive circuit limit, gaining the maximum 10 percent.

Reliance Spinning Mills Limited led the turnover with shares worth Rs 1.135, billion traded, followed by Himalayan Reinsurance Limited (HRL) at Rs 549.298,million.

Meanwhile, all 13 sub-indices ended in the green. Among the gainers, the hydropower sector rose the most, increasing by 4.59 percent.

The recent developments in the money laundering investigation have caused widespread turbulence in the stock market, which has been on a continuous decline. The Nepal NEPSE index has fallen steadily, weakening investor morale.

After rising post-election, the stock market has come under pressure due to the money laundering probe, showing a consistent downward trend. On Sunday, the market fell by 105.50 points (3.79 percent ) to close at 2,676.68 points.

Market analysts and brokers attribute the recent decline to events linked to the money laundering investigation. The arrest of businessman Deepak Bhatt has created psychological pressure, as other investors and businessmen connected to him could also face investigation.