Kathmandu, May 2 -- The Nepal Stock Exchange (NEPSE) index declined sharply this week, hit by profit-booking and growing uncertainty following recent political developments.

The benchmark index closed at 2,738.72 points, down 49.98 points (1.79 percent) over a four-day trading week shortened by the International Labour Day holiday on Friday.

The market showed a steady downward trend throughout the week, eroding investor confidence and portfolios. Total market capitalisation fell to Rs4.67 trillion from Rs4.75 trillion a week earlier, wiping out around Rs80 billion in investor wealth in just four sessions.

The hydropower sector led the losses, followed by declines in hotels and tourism, and manufacturing. Market participation also decli...