With two circuit breaks, the NEPSE spikes 113 points, while the banking sector adds 9.89%.

Today's notable increase of 113.42 points, or 4.41%, on the Nepal Stock Exchange (NEPSE) was indicative of both volatile and upbeat investor sentiment. On the first trading day of the week, the market saw two positive circuit breaks, signaling significant rising momentum that nearly resulted in an early closing. At the end of the trading day, the NEPSE index shot up to 2,681.56 points despite an hour-long pause in trade.

Market Volatility and Trading Pauses

Within a minute of opening at 11:00 am, the market saw a 4% surge, or 102 points, which led to the first circuit break at 11:01 am. Trading was halted for twenty minutes as a result.After trading restarted at 11:21 am, the market gained 1% further in just one minute, for a total gain of 5% or 129 points from the day before. This led to the second halt of trading at 11:22 am, which lasted for 40 minutes. NEPSE regulations state that a 4% movement within an hour triggers a 20-minute pause, a 5% movement within two hours triggers a 40-minute halt, and a 6% movement at any moment results in a market shutdown for the day.

The market shifted after the restart, but it did not lead to a third circuit break. At 12:04 pm, the index peaked at 2,708.58 points, but by 12:14 pm, it had fallen to 2,624.77 points. At 12:27 PM, it recovered to 2,658.4 points; however, at 1:05 PM, it began to fluctuate once more, down to 2,624.5 points. The market eventually rose gradually and reached its closing value when the last bell rang.

Shows Off Performance

The benchmark index continued to rise, and this was reflected in increases of 5.82% for the sensitive index, which measures the performance of class 'A' companies, and 5.03% for the float index, which measures frequently traded shares.

The New Monetary Policy's Effect

The upbeat attitude came after the Nepal Rastra Bank (NRB) announced a monetary policy that is supportive of the market on Friday. The market's rise was aided by the policy's removal of the Rs 200 million cap on share mortgage loans for institutional investors. The cap for private investors did not alter, though. Stakeholders believe that the monetary policy is appropriate and that the stock market is favourable, which has increased investor interest in the stock market.

Every Day Change in Value

At the time of the first trading halt, 556,593 units of shares had been exchanged, resulting in a total market turnover of Rs 272 million. The daily turnover from the exchange of 1,300,205 units of shares of 244 businesses in 4,733 transactions had totaled Rs 524 million by the second trading halt. The daily transaction increased from Rs 14 billion on Friday to Rs 15.81 billion despite these stops. In 163,810 transactions, 40,314,517 units of shares from 318 firms were traded.

Industry Outcomes

The only industry to see a loss today was the microfinance sector, which fell by 0.18% despite the overall optimism in the market. GMFBS, or Ganapati Laghubitta Bittiya Sanstha Limited, had a dip of 9.35%.The remaining sectors, however, were all in the green. With a whopping 9.89% increase, the banking industry topped the gainers, followed by the investment, development bank, and life insurance sectors (5.75%, 4.87%, and 4.24%, respectively).The Non-Life Insurance sector saw a rise of 2.68%, while the Others sector saw a gain of 3.19%. The industries of hotels and tourism and hydropower saw negligible increases of 0.46% and 0.83%, respectively.

Specific Stock Results

Regarding the performance of individual stocks, 148 businesses had gains, 87 saw declines, and eight saw no change. The share prices of twelve firms saw a 10% increase: NIMB, SBI, SANIMA, NMB, PRVU, GBIME, CZBIL, PCBL, ADBL, NBL, ULBSL, and HATHY. Commercial banks made up the top ten gainers, with an investment firm coming in at number twelve and a microfinance company at number eleven. With 3,494 transactions totaling 1,706,582 units of shares exchanged for Rs 361,000,898.40, Kumari Bank Limited (KBL) led in both volume and turnover. At latest trade, it was worth Rs 212.40 (LTP). With 3,765 trades involving its scrips, Himalayan Reinsurance Limited (HRL) was the most traded firm. At Rs 4.254 trillion, the market capitalization was fully realized. Due to advantageous regulatory developments, investor sentiment was overwhelmingly positive during today's trading session.