On the first trading day after the release of the monetary policy by the National Bank, the NEPSE index rose by 113 points to 2,681 points. This is the highest in 29 months. Previously, NEPSE, which was at 2720 points on February 11, 2078, fell to 2661 points on 12th.

Sunday's NEPSE is the highest since then. Through the monetary policy, the Rastra Bank has abolished the share loan limit of 20 crores which was previously imposed on the institutional investors and encouraged the expansion of loans, the investors are excited. Experts say that when banks have more liquidity, interest rates are falling and banks are going from house to house looking for borrowers, because the National Bank has introduced a loose monetary policy, the enthusiasm has increased in the stock market and it has led to a jump in the NEPSE index.

Although it is natural to have a positive impact on the stock market as the monetary policy has been loosened, it seems that investors are more excited than reality when looking at the NEPSE growth trend, according to Neeraj Giri, the former executive director of the Nepal Securities Board. "During this period, the share price of companies whose financial condition is not good has increased without any basis," he said, "therefore, it is time to invest only after properly analyzing the fundamental and technical aspects of the company without following rumours." Because there is no reason for the stock market to increase so much.

If you look at the situation of the company whose share price will increase, it is clear that the risk has increased because the share price of the company with negative net worth has gone up a lot. Stating that even now, limited individuals or organizations continue to operate in the stock market, Giri said, "These groups try to increase the value of certain companies, and the risk of small investors being affected remains high." 

On Sunday, the NEPSE increased by 113.42 points. This is the highest increase since 080 Feb 21. NEPSE increased by 117 points that day. In the first one hour on Sunday, the stock market saw a lot of fluctuations. When the NEPSE increased by 4 percent (more than 120 points) within one minute after the market opened at 11:00, the trading of shares was stopped for 20 minutes through a circuit breaker. After that, after the market opened, after increasing by 5 percent in one minute, the buying and selling of shares was stopped for 40 minutes through the second circuit breaker. When the market opened after 12 o'clock, it looked very restrained. Although the market is on the road to recovery, there is no abnormal growth. This is the reason for the next three hours (from 12:00 to 03:00) that the shares were bought and sold easily.

According to Narendraraj Sijapati, former chairman of Stock Brokers Association, NEPSE has increased because the loose monetary policy has left a positive psychology in the market and there are signs that this trend will continue. It seems that the psychology that the market can't grow and will fall further is over. Therefore, the market will grow slowly," he said, "The stock market of Nepal will always be governed by the policy of the National Bank. In the past, the National Bank only showed fear and panic. Now all of a sudden it seems that love, enthusiasm and love are being shown through policy.'

Monetary policy has opened the door to credit expansion in various areas The loan extended by the bank will directly and indirectly come to the stock market first. That is why Sijapati claims that the market will take the path of growth. Out of those that came into trading on Sunday, the share price of 148 companies increased, the share price of 87 companies decreased and the share price of 8 companies remained stable. The life insurance sub-group grew the most by 519.27 points. Non-life insurance increased by 345.46 points, development bank by 245.92 points, banks by 141.76 points and manufacturing and processing by 134.71 points. Microfinance sub-group declined by 10.06 points.