KATHMANDU: Following the recent monetary policy review by the Nepal Restra Bank (Nepal’s central bank), a surge in investor enthusiasm has been evident in the stock market. In the first hour of trading, the market witnessed a turnover of NPR 3.20 billion. By 12 noon, the NEPSE index had climbed by 26 points, stabilizing at 2792, with notable early interest shown in the banking sector.

The review led to a reduction in the provision rate for quality loans from 1.1% to 1%, an adjustment expected to boost bank profits by approximately NPR 5 billion. This anticipated profit increase has drawn considerable investor attention to bank shares, with the banking sector rising by 2.6%. In addition, the microfinance, investment, and hotel sectors have also seen gains exceeding 1%.