Election momentum lifts Nepal Stock Market as all indices close higher

KATHMANDU: Nepal’s stock market rallied strongly on Sunday as growing momentum around the upcoming House of Representatives election boosted investor confidence, pushing all major indices into positive territory.

The benchmark NEPSE index surged by 31.12 points to close at 2,672, reflecting a broad-based market rally driven by political optimism and improving sentiment across the capital market.

The market remained in positive territory throughout the trading session. Total turnover also increased significantly, rising to Rs 8.40 billion from Rs 6.20 billion in the previous session, indicating renewed investor participation and stronger liquidity in Nepal’s equity market.

With political parties rapidly announcing candidates ahead of the House of Representatives election scheduled for Falgun 21, market participants appear to be pricing in greater political stability and policy continuity.

Analysts say election certainty is improving risk appetite in Nepal’s financial markets, a trend often observed globally when electoral clarity supports investor sentiment.

Broad-Based Market Rally

Out of the listed companies traded on Sunday, share prices of 224 companies advanced, while 31 declined and five remained unchanged. All sectoral indices closed higher, confirming a market-wide recovery rather than a narrow, speculative rise.

The finance sector led the rally with a sharp 5.73 percent gain. Development banks followed with a 3.03 percent increase. The manufacturing and processing sector climbed 2.42 percent, while hotel and tourism rose 2.02 percent, reflecting expectations of economic recovery and stronger domestic demand.

The banking sector, which holds the largest weight in the NEPSE index, advanced by 0.85 percent. Life insurance gained 1.25 percent, microfinance rose 1.31 percent, and investment companies increased by 0.93 percent. Hydropower shares, closely tracked by domestic and foreign investors due to Nepal’s renewable energy potential, gained 0.70 percent.

Non-life insurance increased by 0.68 percent, trading by 0.54 percent, and the “others” group by 0.45 percent, underlining the depth of the market-wide upswing.

Top Gainers and Losers

Four companies hit the upper circuit with 10 percent gains: Sagar Distillery, Unnati Sahakarya Laghubitta, Shreenagar Agritech, and Gorkha Finance.

Central Finance gained 8.88 percent, Gurans Laghubitta rose 8.86 percent, and Bandipur Cable Car advanced 7.47 percent, reflecting strong speculative interest in mid-cap and financial stocks.

On the downside, Three Star Hydropower recorded the sharpest decline of the session, falling 8.78 percent.

The most actively traded stocks of the day included Manjushree Finance, SY Panel, Shreenagar Agritech, Bandipur Cable Car, and Radhi Bidyut, indicating strong retail and institutional interest in finance, manufacturing, tourism, and hydropower counters.

Market analysts note that election-driven optimism is a common global market pattern, as investors associate electoral clarity with policy stability, fiscal discipline, and improved investment climate. In emerging markets like Nepal, political certainty often plays a decisive role in capital market performance and foreign investor perception.

With rising turnover and broad sector participation, Sunday’s rally suggests strengthening confidence in Nepal’s economic outlook and financial market stability.