NEPSE jumps nearly 80 points, turnover stagnant

The stock market staged a sharp rebound on Friday, with the Nepal Stock Exchange (NEPSE) index soaring 79.74 points to close at 2,677.54, its biggest single-day gain in more than three months.

The rally came on the first trading day of the new fiscal year 2026/27, as investor confidence improved despite the implementation of higher capital gains tax rates. The market has gained a total of 107 points since July 14, extending its winning streak to four consecutive trading sessions.

Trading turnover remained broadly flat at NRs 4.57 billion, compared with NRs 4.56 billion in the previous session, indicating that the sharp rise in the benchmark index was not accompanied by a significant increase in trading activity. A total of 103.89 million shares of 335 listed securities were traded.

The market witnessed broad-based gains, with share prices of 259 companies rising, 13 declining, and two remaining unchanged.

Shrinagar Agritech emerged as the day's top performer, gaining 15% to Rs 963.70 per share. Suryakund Hydropower followed closely with a 14.83% rise to Rs 1,004. In contrast, Atmanirbhar Laghubitta fell the most, dropping 15% to Rs 6,120, while First Microfinance declined 8.72% to Rs 785.

Aankhu Khola Hydropower recorded the highest trading value of the day, with shares worth NRs 222.3 million changing hands at NRs 363 per share, up 7.72% from the previous session. Corporate Development Bank ranked second with transactions worth NRs 177.3 million, followed by Reliance Spinning Mills.

Of the 13 sectoral indices, 12 posted gains, while only the Mutual Fund index ended lower. The Manufacturing and Processing sub-index led the market, climbing 4.60%.

Friday also marked the enforcement of revised capital gains tax rates on share transactions. Investors selling shares held for more than one year are now subject to a 7.5% tax on profits, while gains on shares held for less than a year are taxed at 10%.

Some market participants attributed the strong rebound to improved investor sentiment following Thursday's meeting between Prime Minister Balen Shah and Nepal Rastra Bank Governor Dr. Bishwanath Poudel, as well as Shah's recent efforts to engage with the business community through a series of meetings with private sector stakeholders on economic issues. Additionally, according to brokers, the government's assurance of support for the capital market, regulatory initiatives by the Securities Board of Nepal (SEBON), implementation of recent monetary policy measures, including allowing margin loans of up to 80% against eligible shares has contributed to the market's recovery.

The benchmark index had fallen more than 360 points since the current government took office, wiping out an estimated NRs 600 billion in investor wealth. Friday's rally signals renewed optimism among investors after weeks of sustained market weakness.