The Nepal Stock Exchange (Nepse) index closed lower on Thursday, snapping a three-day winning streak on the final trading day of the week.

The benchmark index fell by 10.66 points, or 0.40 percent, to settle at 2,615.03 at the close of trading.

Market breadth remained largely negative. Of the stocks traded during the session, 63 advanced, 194 declined and two remained unchanged, indicating broad-based selling pressure across the market.

Total turnover increased compared to the previous session. A total of 11.29 million shares were traded through 64,029 transactions, generating a turnover of Rs4.57 billion. On Wednesday, the market recorded transactions worth Rs4.05 billion.

Sectoral performance was mostly weak. Of the 13 sub-indices, only trading and non-life insurance posted marginal gains, while the hotels and tourism index remained flat. All other sectoral indices closed in the red, according to Nepse.

The decline came despite improved trading activity, reflecting cautious investor sentiment following recent gains.