The Nepal stock market witnessed a significant rally on Tuesday following news of a consensus among major ruling coalition parties on the appointment of the Nepal Rastra Bank governor. The anticipation of the decision, expected to be finalized in the Council of Ministers meeting at 5 PM, has sparked optimism among investors.

The Nepal Stock Exchange (NEPSE) index climbed 49.09 points (1.86%) to settle at 2677 points. However, despite the rise in the index, trading volume saw a slight decline. Compared to Monday’s turnover of NPR 7.35 billion, Tuesday recorded NPR 7.31 billion in transactions.

Of the listed companies, 229 saw their share prices rise, 15 experienced a decline, and one remained unchanged. All sector indices recorded gains, with the hotel and tourism sector leading the charge with a 3.42% increase. Other sectors also performed strongly: banking rose by 1.91%, development banks by 2.95%, finance by 2.44%, hydropower by 2.45%, investment by 2.33%, life insurance by 1.32%, manufacturing by 1.89%, microfinance by 1.13%, non-life insurance by 1.74%, others by 0.84%, and trading by 1.49%.

Five companies hit the maximum 10% price increase limit: Sindhu Bikas, Saptakoshi Development Bank, Om Megashree Pharmaceuticals, Green Development Bank, and Rapti Hydro. Additionally, Matribhumi Microfinance gained 7.83%, Manakamana Engineering Hydropower 6.88%, and Joshi Hydropower 6.14%.

On the downside, Win Nepal Microfinance saw the steepest decline, dropping 3.09%. The top traded companies included Radhi Bidyut, Ngadi Group, Universal Power, Sanima Mai Hydropower, and Soltee Hotel.

Market analysts attribute the positive sentiment to the resolution of the long-standing governor appointment issue. However, the dip in trading volume suggests investors remain cautious. The formal announcement of the governor’s appointment is expected to further bolster market confidence in the coming days.