The Nepal Stock Exchange (NEPSE) index extended its losing streak for the fifth straight session, falling 1.64% or 46.33 points to close at 2,772.10 on Sunday, March 9.

With this decline, the index has lost a total of 118.17 points over the past five trading days. This follows a strong rally of 211.78 points recorded over the previous nine consecutive sessions of gains.

Market analysts suggest that the continuous decline has prompted increased selling pressure, particularly among retail investors. Many traders are now waiting for a potential bottom before re-entering the market.

Some investors argue that ongoing political events may also be contributing to the market decline. In recent weeks, supporters of monarchy have carried out rallies across various parts of the country, denouncing the current political system, particularly after former King Gyanendra Shah's message on the eve of Prithvi Jayanti in January.

On Sunday afternoon, cadres of pro-monarchist parties, along with other supporters, gathered in large numbers to welcome the former king as he returned to Kathmandu from Pokhara.

Trading volume also saw a slight dip, with total turnover surpassing Rs 10.09 billion, marginally lower than last Thursday’s Rs 10.1 billion. More than 22.5 million shares were exchanged across 112,347 transactions.

All three major indices closed in negative territory. The Sensitive Index dropped 1.55%, the Float Index declined 1.64%, and the Sensitive Float Index fell 1.55%.

Among individual stocks, Guardian Micro Life Insurance Limited (GMLI) and 9% ICFC Finance Limited Debenture 2088 (ICFCD88) hit the upper circuit limits, while Bhugol Energy Development Company Limited (BEDC) surged 9.99%. On the losing end, Upakar Laghubitta Bittiya Sanstha Limited (ULBSL) and Sindhu Bikash Bank Ltd (SINDU) hit their lower circuit limits.

In terms of turnover, Himalayan Reinsurance Limited (HRL) led the market, followed by Nepal Reinsurance Company Limited (NRIC) and NRN Infrastructure and Development Limited (NRN).

All 13 sectoral indices ended in the red, with the Others Index suffering the steepest loss of 2.69%.