Nepal Stock Exchange (NEPSE) continued its downward trend today, losing 63.73 points. The market opened at 2,923.87, reached a high of 2,923.88, dipped to a low of 2,856.95, and finally closed at 2,858.90, marking a decline of 2.18% from the previous day.

Turnover stood at NPR 12.85 billion, continuing its five-day decline. This consistent drop in turnover indicates that trading activity is slowing, reflecting a cautious and wait-and-see approach by investors. The declining turnover is a key concern, as it suggests lower market participation and reduced liquidity in the short term.

Out of 319 companies that traded today, only 16 saw their prices increase, while 233 declined. Despite the broad market weakness, Trade Tower and Shiva Shree Hydropower Limited (SSHL) stood out by gaining 9.99%, hitting the upper circuit.

Sector-wise, the 'Others' index witnessed the steepest fall, dropping by 3.48%. This was followed by the Microfinance index, which declined by 3.05%. The Manufacturing and Processing sector fell by 2.43%, and the Banking index shed 2.27%.

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Market participants are closely watching for stronger catalysts such as corporate earnings, favorable economic policy changes, or improvements in trading volumes to regain confidence. The 2,850 level remains a critical support zone; holding above this could signal market stabilization, while a breach may trigger further declines.

In the near term, unless turnover picks up and new buying interest emerges, the market may continue to face pressure. However, with underlying positives like declining interest rates and corporate actions, a medium-term recovery remains a possibility once trading activity revives.

"While bonus share declarations and falling interest rates are positive, the continuous decline in turnover is a sign of cautious investor sentiment. A revival in trading volume is essential for any sustainable market rebound," said a market analyst.