Nepal Election Stock Market Jumps 45 Points
20th January 2026, Kathmandu
The Nepal Stock Market witnessed a strong bullish rally today, January 20, 2026, coinciding with the nationwide nomination filing process for the upcoming House of Representatives election scheduled for March 5, 2026 (Falgun 21, 2082). As political activity intensified across the country, investor confidence surged, leading to a sharp rise in the Nepal Stock Exchange index and a significant increase in trading volume.
Nepal Election Stock Market
Historically, election periods in Nepal have often been associated with increased market liquidity and heightened investor sentiment. The trading session on Tuesday reflected this pattern clearly, as the stock market responded positively to expectations of political stability and accelerated economic activity in the post-election period.
NEPSE Index Records Strong Gains
From the opening bell, the NEPSE index moved decisively upward. By midday, the benchmark index had climbed 45.69 points, representing a 1.70 percent increase, to reach 2,718.24 points. This sharp rise marked one of the strongest intraday performances in recent weeks, following a period where the market had been oscillating in a relatively tight range.
Market analysts attribute this rally to growing optimism among investors who believe that the formal commencement of the election process—with nominations for the 275 seats of the House of Representatives being filed today—paves the way for a stable government. The anticipation of policy continuity and renewed momentum in infrastructure development after the March 5 vote is acting as a primary catalyst for the current buying interest.
Trading Volume Sees Sharp Increase
Alongside the index surge, trading activity expanded substantially. Within the trading session, total turnover reached approximately 4.87 billion rupees, signaling strong participation from both institutional and retail buyers.
During the session:
311 companies were actively traded on the floor.
Approximately 19 million shares changed hands.
Transactions were completed through 44,195 individual trades.
The surge in turnover indicates a clear dominance of buyers in the market and reflects a renewed risk appetite among investors who had previously been sitting on the sidelines.
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Broad-Based Market Strength
The internal market structure further confirmed the bullish sentiment. Out of the traded companies, 236 companies recorded price gains, while only 20 companies saw their share prices decline. Three companies remained unchanged during the session.
This broad-based participation suggests that the rally was not limited to a few speculative stocks but spread across multiple sectors, including banking, hydropower, and finance. The overwhelming number of gainers compared to losers reinforces the strength of the overall market trend on this significant political day.
Top Gainers and Most Traded Stocks
Among individual stocks, Goodwill Finance emerged as the top gainer of the day, with its share price jumping 9.59 percent to reach 616 rupees. Other notable gainers included Rapti Hydropower, which rose by 8.61 percent, and Shrinagar Agrigate, which saw a 7.60 percent increase. Stocks such as Pure Energy and SY Panel also posted strong gains, attracting significant investor attention.
In terms of trading value, GVL led the market with transactions exceeding 249.6 million rupees. It was followed by NRN Infrastructure and Development Limited, which recorded over 203.3 million rupees in turnover, and Manjushree Finance, with trades worth approximately 169.1 million rupees.
Relationship Between Elections and the Stock Market
In the economic context of Nepal, election cycles often generate positive expectations in the capital market. Increased government spending during the campaign period, easier liquidity conditions, and promises of development-oriented policies from major parties like the Nepali Congress and CPN-UML typically encourage investors to re-enter the market.
The nomination filing day itself carries symbolic importance, as it marks the formal start of the First Past the Post electoral process. The enthusiasm observed among candidates across the 165 constituencies appears to have translated directly into stronger investor confidence in the Kathmandu based exchange.
Market observers note that while short term rallies are common during election periods, the long term direction of the Nepal Election Stock Market will ultimately depend on the final election outcomes, the subsequent government formation, and the policy priorities of the incoming administration regarding the private sector and capital market regulations.
Short-Term Optimism and Long-Term Watchfulness
For now, the visible greenery in the market has provided relief to investors who had been cautious in recent sessions. If the current trading momentum continues as the campaign heats up, analysts believe daily turnover could approach or even exceed previous record levels.
However, experts also advise investors to remain vigilant. Market volatility could increase closer to the March 5 election day depending on shifting political alliances or any potential unrest. For now, the sentiment remains focused on the “election rally” phenomenon.
Conclusion
The Nepal Election Stock Market rally on nomination day highlights the powerful connection between political events and investor sentiment. With NEPSE climbing over 45 points and trading volume expanding sharply today, the market has sent a clear signal of short term optimism. While uncertainties regarding the final seat count remain, the strong performance reflects growing expectations of political stability and economic acceleration in the months ahead.
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