The Nepal Stock Exchange (NEPSE) index fell by 25.46 points, or 0.93%, on Sunday, the first trading day of the week, to close at 2,701.90 points.

The session witnessed the trade of 328 scrips in 112,692 transactions.

The declining market saw over 22 million shares traded on the day, leading to a turnover of Rs 10.12 billion, an increase from the previous turnover of Rs 9.65 billion last Thursday.

Stock analysts said the drop in index was a market correction, suggesting NEPSE would regain momentum after completion of the correction cycle.

The Sensitive Index and Float Index fell by 1.36% and 1.06%, respectively, while the Sensitive Float Index dropped by 1.41%.

Among the traded stocks, 156 saw their prices drop and 86 witnessed the rise while share prices of 3 companies remained unchanged. 

Mahuli Laghubitta Bittiya Sanstha Limited (MSLB), Shrijanshil Laghubitta Bittiya Sanstha Limited (SHLB), and Mid Solu Hydropower Limited (MSHL) were the top gainers of the day, each posting a 10% increase.

In contrast, Three Star Hydropower Limited (TSHL) experienced the largest decline, hitting the negative circuit.

On the turnover front, CEDB Hydropower Development Company Limited (CHDC) led the pack followed by Hydroelectricity Investment and Development Company Limited Promoter (HIDCLP).

In terms of sector wise performance, the Microfinance Index rose by 1.21%, while the Development Bank Index saw the largest decline of 2.07%.