After a steep two-day decline of 118 points, the Nepal Stock Exchange (Nepse) index posted a modest recovery on Tuesday, gaining 19.70 points (0.69 percent) to settle at 2,851.09. However, daily turnover reduced to Rs 11.11 billion from Rs 12.96 billion in the previous session, signaling weak market participation.

The market closed at 2831.39 points. Market capitalisation rose to Rs 4.84 trillion from Rs 4.81 trillion, adding around Rs 30 billion in investor wealth. Free float market capitalisation also increased to Rs 1.63 trillion from Rs 1.62 trillion.

The index opened at 2,831.36, hitting an intraday high of 2,860.55 and a low of 2,788.84. A total of 27,942,777 shares of 339 companies were traded through 137,857 transactions.

The market showed early weakness, slipping 0.03 points in the pre-open session and remaining subdued until midday before gaining strength later in the session.

Except for two, all 13 sub-indices closed in green. Manufacturing and processing led the gains with a 1.94 percent rise, while others and mutual funds dropped 0.55 percent and 0.07 percent respectively.

Other gaining sub-indices included finance (1.12 percent), hotel and tourism (1 percent), development bank (0.90 percent), banking and non-life insurance (0.76 percent each), hydropower (0.75 percent), trading (0.74 percent), investment (0.56 percent), life insurance (0.52 percent), and microfinance (0.51 percent).

Ridi Power Company Limited (RIDI) led turnover, with transactions worth over Rs 484 million, closing at Rs 367.80. Other top traded stocks included Api Power Company Limited (over Rs 403 million), NRN Infrastructure and Development Limited (over Rs 378 million), SY Panel Nepal Limited (over Rs 374 million), and Kumari Bank Limited (over Rs 359 million). They closed at Rs 358.10, Rs 1601.10, Rs 1899.90, and Rs 232, respectively.

Six stocks—Reliance Spinning Mills Limited (RSML), Bhujung Hydropower Limited (BJHL), Super Khudi Hydropower Limited (SKHL), Ridge Line Energy Limited (RLEF), Hotel Forest Inn Limited (HFIN), and Suryakunda Hydro Electric Limited (SKHEL)—hit the upper circuit. They closed at Rs 2679.30, Rs 578.60, Rs 48310, Rs 399.30, Rs 349.80, and Rs 378.20, respectively.

Saptakoshi Development Bank Limited (SAPDBL) recorded the biggest loss, dropping 8.96 percent to close at Rs 954.40.

NIC Asia Balanced Fund declined 5.71 percent to Rs 9.58, while NIBL Growth Fund dropped 4 percent to Rs 9.36. Ridi Power also fell 3.21 percent.

The decline in Saptakoshi Development Bank likely reflects profit-booking after the stock hit the upper circuit in the previous day, according to stock market analysts.