Kathmandu-The Nepal Stock Exchange (NEPSE) index,  which has been experiencing volatility in recent days, increased on Wednesday.

The NEPSE index rose by 4.99 points to close at  2,782.10. 

Likewise,  a total of 15.249 million shares of 354 companies were traded 60,562 times,  with a turnover of Rs 6,030 billion. 

Among individual companies, Kalinchowk Hydropower Limited posted the highest gain of the day, rising by 14.98 percent. In terms of turnover, Aankhu Khola Hydropower Company Limited led the market with transactions worth Rs 712.233 million.

Sector-wise, all subgroup indices except mutual funds, finance index, hotel and tourism index, manufacturing and processing, and other index ended in the red. The finance subgroup recorded the biggest decline, falling by 0.38 percent.

Although the market witnessed only a modest movement, investors seeking fresh momentum following the formation of the new government found some relief. However, overall market enthusiasm has yet to fully return.

Investor sentiment remains cautious ahead of the government’s announcement of the budget for the upcoming fiscal year later this week.

Market participants appear uncertain about their future investment strategies, as the government has yet to clarify the level of priority it will give to the stock market and what policy reforms may be introduced through the new budget.

Due to this pre-budget uncertainty, the market has struggled to make significant gains, with large and institutional investors continuing to adopt a wait-and-see approach. At present, market activity appears to be driven mainly by small and retail investors.

A vibrant capital market not only boosts investor confidence but also sends a positive signal to the broader economy by encouraging overall economic activity.