Wave of Public Support for Rastriya Swatantra Party Signals Political Shift; Investors Expect Positive Impact on Stock Market

Preliminary results from the House of Representatives election indicate a strong wave of public support for the Rastriya Swatantra Party (RSP), a political party that was established only three years ago. Early vote trends suggest that the party is not only moving toward a majority but may even secure a two-thirds majority in parliament, according to political observers analyzing the ongoing vote count.

The growing popularity of the party has been particularly visible among younger voters. Analysts say the enthusiasm increased further after the party presented Balen Shah—the current mayor of Kathmandu Metropolitan City—as a senior leader and a potential future prime minister. His strong appeal among youth and urban voters appears to have significantly boosted support for the party in several constituencies.

Recent vote updates also show RSP leading ahead of many traditional political parties in multiple areas. Political commentators view this trend as a sign of public frustration with the existing political establishment and a desire for new leadership and governance reforms.

Economists and market analysts believe that if the party succeeds in forming a stable government, it could have a positive impact on the country’s economy and capital market. For decades, frequent government changes have been seen as a major obstacle to economic stability and long-term policy continuity.

Over the past 37 years, Nepal has witnessed nearly 30 changes in government, a cycle that analysts say has prevented consistent economic policymaking and slowed structural reforms. Rapid changes in leadership often disrupted policy implementation and created uncertainty in the investment environment. Many voters had expressed growing frustration with this instability, and the current election results appear to reflect a demand for a more stable political framework.

Investor sentiment in the stock market has also improved amid expectations of a stable government. Market participants say that political stability often boosts investor confidence, which in turn encourages higher investment and trading activity in the capital market.

Another factor contributing to investor optimism is speculation that economist and parliamentarian Swarnim Wagle could take the role of finance minister if RSP forms the government. Investors believe that Wagle’s strong academic background and understanding of economic policy could lead to reforms that support both the broader economy and the stock market.

Market analysts note that several key economic indicators are currently showing positive signals. If these conditions are combined with consistent economic policies under a stable government, the country could see stronger economic momentum in the coming years.

According to capital market experts, the growing optimism among investors could translate into increased activity in the stock market in the coming trading sessions. Many expect the effects of the election results and investor confidence to start appearing in market movements as early as next week.