The Nepal Stock Exchange (Nepse) index jumped by 42.26 points on Tuesday, closing at 2,741.81 points, as investor sentiment improved amid optimism surrounding the upcoming parliamentary elections.

The benchmark index gained 1.58 percent compared to the previous session. Market analysts attributed the rally to growing confidence after the election process gathered pace, with nationwide nomination filings underway for the House of Representatives election scheduled for March 5.

Market breadth remained strongly positive. Share prices of 224 companies advanced, while 31 declined and five remained unchanged during the session.

A total of 25,185,647 shares were traded through 115,181 transactions, generating a turnover of Rs11.85 billion, reflecting heightened investor participation.

All 13 sub-indices ended in positive territory. Life insurance led the gains, rising by 243.14 points, followed by hotels and tourism, which climbed 241.55 points. Gurkhas Finance hit the upper circuit with a 10 per cent gain.

Among other gainers, Ankhu Khola Hydropower rose by 8.13 percent, Rapti Hydro and General Construction by 7.87 percent, National Hydropower Company by 7.32 percent, and NRN Infrastructure Development by 7.04 percent.