NEPSE index surged

Kathmandu: The stock market is directly influenced by monetary policy changes. On Friday, Nepal Rastra Bank announced the monetary policy for the financial year 2081/82.

The policy's removal of the NRS 200 million limit on institutional margin loans for equity has led to a significant market reaction. On Sunday, the NEPSE index surged by 3.99 percent during the pre-opening session.

According to the Nepal Stock Exchange, the NEPSE index had risen by 102.68 points to 2,670.82 by 11 a.m., with trading valued at NRS 272 million.

The market's boost on Sunday is attributed not only to the removal of the share mortgage loan limit but also to the easing of bank loans and reduced financial risk. The monetary policy also includes a reduction in financial management provisions, further contributing to the positive market sentiment.