Kathmandu, Aug. 26 -- The stock market fell sharply on Wednesday, with hydropower and non-life insurance companies bearing the brunt of selling after a major flood hit Rasuwa in the morning.

The Nepal Stock Exchange (NEPSE) index dropped 35.92 points from Tuesday to close at 2,558.35 points.

Of the 13 sub-indices that traded on Wednesday, the hydropower index fell 2.84 percent, while the non-life insurance index posted the steepest decline, dropping 3.90 percent.

The sharp fall in hydropower shares was attributed to preliminary reports of extensive damage to several hydropower projects in and around Rasuwa. Companies with projects in the Rasuwa area were among those whose share prices declined significantly.

Non-life insurers also fac...