The Nepal Stock Exchange (Nepse) index surged by 5.01 points (0.17 percent) on Monday, the second trading day of the week, closing at 2936.56 points. However, total turnover declined to Rs 15.78 billion from Rs 23.59 billion in the previous session. In the previous session, the benchmark index closed at 2931.55 points.

The market continued to rise for the fourth consecutive day, rising by 137.72 points (4.84 percent) over the period. In the past 10 days, the index climbed by 328.97 points (11.84 percent), although it declined by 104.93 points (3.67 percent) for three days (March 10, 11 and 16) during the period.

On March 9, the market hit the upper circuit limit of six percent, triggering the trading halt for the day.

The rally was connected to improved investor sentiment and expectations of political and economic stability, following the March 5 parliamentary elections.

"Overall, the market has seen positive sentiments among investors and traders," market analyst Ramhari Nepal said.

In Monday's session, the pre-open saw a gain of 8.09 points. The index later dropped to an intraday low of 2906.05 points before buyers took control after 2 pm, pushing the market up.

“Buyers dominated in the last hour, indicating a positive outlook, but the market needs a healthy correction as traders are looking to book profits after continuous gains,” Nepal said. He added that Monday’s chart formed a bearish “hanging man” candle, signalling a potential correction.

On Monday, the index opened at 2939.65 points, hitting an intraday high of 2941.53 and a low of 2906.05. A total of 3,80,73,945 shares of 342 companies were traded through 156,381 transactions.

Market capitalisation stood at Rs 49.77 billion, with free-float capitalisation at Rs 16.98 billion.

Of the 13 sub-indices, seven posted gains while six declined. Manufacturing and processing led the gainers with a 1.53 percent rise, while hotels and tourism fell the most by 0.86 percent.

Other gainers included hydropower (0.96 percent), mutual funds (0.88 percent), investment (0.72 percent), microfinance (0.43 percent), finance (0.2 percent), and others (0.01 percent). Other losers included trading (0.63 percent), development banks (0.5 percent), life insurance (0.47 percent), banking (0.27 percent), and non-life insurance (0.04 percent).

Kumari Bank Limited led turnover with over Rs 670 million, closing at Rs 246.40.

Four stocks—Bhujung Hydropower Limited (BJHL), Reliance Spinning Mills Limited (RSML), Salapa Bikas Bank Limited (SABBL) and Solu Hydropower Limited (SOHL)—hit the upper circuit with gains of 10 percent each. They closed at Rs 326. 80, Rs 1512.60, 1,680.10, and Rs 531.40, respectively.

Sunrise First Mutual Fund posted the biggest loss, falling 3.71 percent to close at Rs 10.39.