The Nepal Stock Exchange (Nepse) index extended losses for the second consecutive day on Monday, following a massive rally in the previous week. The benchmark index recorded a loss of 47.71 points (1.65 percent), closing at 2831.39 points. Daily turnover also dropped to Rs 12.96 billion from Rs 15.03 billion in the previous session when the market closed at 2879.11 points.

The index opened at 2,881.98, and reached an intraday high of 2,891.53 and a low of 2,821.82. A total of 31,606,717 shares of 341 companies were traded through 159,328 transactions. Market capitalisation stood at Rs 4.81 trillion with a free float market capitalisation of Rs 1.62 trillion.

Analysts said the decline reflects both domestic and global pressures. Rising petroleum prices, geopolitical tensions, and recent political developments, including the arrest of high-profile leaders, have reduced investor confidence.

Stock market analyst Shakti Koirala said the earlier rally was driven by optimism following the March 5 parliamentary elections and expectations of a stable government.

“The market has already priced in those developments and is now looking for fresh positive triggers,” he said, adding that the current decline could be temporary.

During Monday’s session, the index showed early weakness despite a 2.86-point gain in pre-open trading. Selling pressure intensified after midday, leading to a sharp fall.

All 13 sub-indices closed in red. Trading sub-index led the top losers list with a 2.56 percent decline, while manufacturing and processing declined the least with a 0.21 percent loss.

Other sub indexes declined included others (2.13 percent), finance (2 percent), hydropower (1.93 percent), non-life insurance (1.82 percent), investment (1.59 percent), life insurance (1.40 percent), microfinance (1.30 percent), development bank (1.24 percent), hotel and tourism (1.18 percent), and mutual fund (0.98 percent).

Ridi Power Company Limited (RIDI) led turnover, with transactions worth over Rs 684 million, closing at Rs 1970.

Seven stocks—Reliance Spinning Mills Limited (RSML), Bhujung Hydropower Limited (BJHL), Ridge Line Energy Limited (RLEF), Hotel Forest Inn Limited (HFIN), Super Khudi Hydropower Limited (SKHL), Suryakunda Hydro Electric Limited (SKHEL), and Saptakoshi Development Bank Limited (SAPDBL)—hit the upper circuit. They closed at Rs 2435.80, Rs 526, Rs 363, Rs 318, Rs 439.20, Rs 343.90, and Rs 1048.30, respectively.

Solu Hydropower Limited (SOHL) recorded the biggest loss, dropping 7.79 percent to close at Rs 675. The decline followed profit booking after a prolonged rally, with the stock having hit the upper circuit for nine straight sessions after its IPO listing.