The Nepal Stock Exchange (NEPSE) index fell by 12.10 points, or 0.44%, on Thursday, the last trading day of the week, to close at 2,727.36 points.

The session witnessed the trade of 316 scrips in 112,692 transactions.

Over 20 million shares were traded on the day, leading to a turnover of Rs 9.65 billion.

The market reported a turnover of over Rs 12.9 billion the previous day (Wednesday).

Stock analysts say corrections should be taken positively as they are crucial for the sustainable market growth. And investors need to remain calm during market fluctuations.

The week started with a notable drop of 53.63 points with the index falling below the 2,700 point-mark on Sunday.

On Monday, however, the market rebounded strongly with the NEPSE index rising by 127.32 points, a 4.72% increase, crossing the 2,800-mark. 

While Tuesday saw a modest improvement, with the index climbing by 6.90 points to settle at 2,830, the index nosedived by 90.73 points on Wednesday to close below the 2,750-mark.

Seasoned investor Chhote Lal Rauniyar told NBA that market fluctuations are a part of the process, and must be taken positively.

“Most of the new investors, especially the novice youths, want the market to continue to surge in hopes of making quick profit,” Rauniyar said. “The idea that the market should never decline is nothing more than a daydream.”

The recent decline is a result of short-term investors being dominant in the market, analysts argue.

Rauniyar believes the market would continue to improve as long as the current political coalition remains in power.

“Investors are confident in the stability of the current government, with both the Prime Minister and Finance Minister known to be market-friendly,” Rauniyar added. “With favourable monetary policy and abundant liquidity in the banking system, the market is unlikely to experience a significant decline while this government remains in power."

The Sensitive Index and Float Index fell by 0.48% and 0.49% while the Sensitive Float Index dropped by 0.43%.

Among the traded stocks, 138 saw the price drop and 102 witnessed the rise while share prices of four companies remained unchanged. 

On the turnover front, Nepal Finance Ltd. (NFS) led the pack followed by NLG Insurance Company Ltd. (NLG).