The Nepal Stock Exchange (Nepse) index rebounded on Monday, the second trading day of the week, gaining 83.33 points (3.11 percent) to close at 2,760.02. However, turnover declined to Rs 10.92 billion from Rs 12.38 billion in the previous day, when the market had dropped 105.50 points to settle at 2,676.68.

Market analysts said gains supported by higher turnover typically signal stronger participation and more sustained growth.

Market capitalisation rose to Rs 4.692 trillion from Rs 4.550 trillion, adding Rs 142 billion in investor wealth.

The market has seen a sharp fall since the formation of the new government led by Balendra Shah, a senior leader of the Rastriya Swatantra Party, a party widely seen as market-friendly. Since then, the index has shed 190.14 points.

Chartered accountant and stock market analyst Manish Aryal described the rebound as positive. “The market has surged with decent volume. If the index holds above the key support level of 2,680–2,700, it will continue its upward trajectory,” he said.

Aryal also said assurance of Finance Minister Dr Swarnim Wagle to introduce reforms in the stock market, and curb anomalies such as insider trading contributed to Monday’s surge.

He attributed the recent drop of over 190 points to the arrest of high-profile political and business figures.

Despite a marginal loss of 1.74 points in the pre-open session, the market gained momentum from the beginning as buying pressure intensified. It opened at 2,674.94, hitting an intraday high of 2,776.08 and a low of 2,669.70. A total of 25,155,854 shares of 345 companies were traded through 124,093 transactions.

All 13 sub-indices ended higher, with hydropower leading gains at 4.59 percent. Other gainers included finance (4.03 percent), development banks (3.63 percent), investment (3.33 percent), hotels and tourism (3.24 percent), banking (3.18 percent), non-life insurance (2.95 percent), life insurance (2.66 percent), trading (2.40 percent), others (2.36 percent), manufacturing and processing (1.53 percent), and mutual funds (1.40 percent).

Reliance Spinning Mills Limited (RSML) led turnover with Rs 1.13 billion, closing at Rs 3509. Other actively traded stocks included Himilayan Reinsurance Limited (HRL), NRN Infrastructure and Development Limited (NRN), Api Power Company Ltd. (API), and Ridi Power Company Limited (RIDI).

Nine companies hit the upper circuit. Upakar Laghubitta Bittiya Sanstha Limited (ULBSL), Bhujung Hydropower Limited (BJHL), Ridi Power Company Limited (RIDI), National Hydro Power Company Limited (NHPC), Super Khudi Hydropower Limited (SKHL), Ridge Line Energy Limited (RLEL), Suryakunda Hydro Electric Limited (SKHEL), Hotel Forest Inn Limited (HFIN), and Corporate Development Bank Limited (CORBL) closed at Rs 3,289, Rs 847, Rs 347.60, Rs 276.10, Rs 707.10, Rs 584.50, Rs 553.60, Rs 511.90, and Rs 1,812, respectively.

Top losers included Laxmi Bank Debenture 2088 (LBLD88), Century Debenture 2088 (CCBD88), Laxmi Value Fund 2 (LVF2), Reliance Spinning Mills Limited (RSML), and ICFC Finance Limited Debenture 2088 (ICFCD88). LBLD88 fell 3.10 percent while the others declined by less than 2 percent each.