Nepal's stock market has witnessed a historic rally, fueled by positive policy signals from the government aimed at promoting capital markets. In just six trading days, the NEPSE index has surged by 248 points, reaching 2,973.70 points on Tuesday. This rally has pushed the total market capitalization to NPR 4.96 trillion, the highest in Nepal's stock market history.

Investor confidence has significantly improved, with trading volumes soaring. On Tuesday alone, the total turnover crossed NPR 20.08 billion, up from NPR 16.32 billion recorded the previous day — marking one of the highest trading volumes in recent months.

All Sector Indices Turn Green

All 13 sub-indices on NEPSE closed in green on Tuesday. The Manufacturing and Processing sub-index led the rally with a gain of 4.63%, followed by Life Insurance and Microfinance, both rising more than 4%. Other sectors like Hotels & Tourism, Investment, and Others also posted gains exceeding 3%.

Three stocks — Trade Tower, Shivam Cements, and Sanvi Energy — hit their positive circuit levels. Meanwhile, Unnati Sahakarya Microfinance surged by nearly 10%, and Bindhyabasini Hydropower gained over 9.5%. Despite some declining stocks, none saw a drop exceeding 4%.

Nepal Reinsurance Leads in Turnover

In terms of trading volume, Nepal Reinsurance Company led the market with transactions worth NPR 718.8 million. Shivam Cements followed with over NPR 680 million, and Himalayan Reinsurance posted a turnover exceeding NPR 560 million.

Technical View: 3000 Psychological Level in Sight

According to the TradingView chart analysis, NEPSE has successfully broken past the strong resistance zone of 2840–2880, which had previously acted as a ceiling. This time, the index has convincingly breached this barrier and now stands just shy of 2,970.

Technical analysts believe that if this breakout holds, the index could soon breach the psychological 3000-point level, with potential to rally further towards 3,200 in the coming sessions.

Broker Activity: Buy Pressure Increasing

Interestingly, a shift in broker activity has also been observed. While major brokers showed selling pressure in previous sessions, 7 out of the top 10 brokers were seen placing higher buy orders on Tuesday. The remaining 3 brokers still leaned toward selling.

With favorable government policies, rising investor participation, sector-wide gains, and a strong technical breakout, NEPSE appears to be entering a new bullish phase. If the index holds above key resistance levels, the journey toward 3,200 points seems increasingly likely.