KATHMANDU, JULY 28

The Nepal Stock Exchange (NEPSE) market has stabilized following the 40-minute halt after the second positive circuit break.

The market saw a 4% rise within a minute after opening at 11:00 AM, triggering the first circuit break at 11:01 AM. Trading resumed at 11:21 AM, and the market immediately surged another 1%, making a total 5% increase and leading to the second halt at 11:22 AM for 40 minutes.

Upon resumption, the market experienced some fluctuations and is unlikely to see a third circuit break due to the high supply in the market.

As per NEPSE regulations, a 20-minute halt is mandated after a 4% movement within an hour, a 40-minute halt for a 5% movement within two hours, and a market closure for the day if a 6% movement occurs at any time.

According to market experts, investor sentiment is high following the market-conducive monetary policy published on Friday by the Nepal Rastra Bank (NRB). The policy removed the Rs 200 million limit for institutional investors taking shares as collateral from banks and financial institutions.

Currently, the banking sector is leading the gainers.