Nepal's stock market rallied sharply on Monday after Prime Minister Balendra Shah expressed the government's commitment to addressing long-standing issues in the country's capital market.

The NEPSE Index surged 41.70 points (1.56%) to close at 2,719.24, marking its highest level since June 15 (Ashadh 1). The benchmark had previously reached 2,711.76 points on June 15 but had failed to surpass that level until now.

The market rally followed a high-level meeting chaired by the Prime Minister with representatives from the Securities Board of Nepal (SEBON), Nepal Stock Exchange (NEPSE), brokerage firms, investor associations, and other capital market stakeholders.

During the discussion, the Prime Minister assured participants that the government is serious about resolving regulatory and structural issues affecting Nepal's securities market. The announcement helped improve investor confidence, which was reflected in Monday's strong market performance.

A total of 343 listed companies were traded during the session. Share prices of 239 companies advanced, 32 declined, while the remaining companies closed unchanged.

The market recorded a turnover of Rs 5.51 billion, with 12.24 million shares changing hands. Trading volume increased by 20.49% compared to the previous trading session on Friday.

Sector-wise, all indices except the Mutual Fund Index closed higher, with the Manufacturing and Processing Index leading the gains, rising 3.21%.

Among individual stocks, Everest Color Limited, Ridge Line Energy Limited, and Shreenagar Agritech Industries emerged as the top gainers. Meanwhile, Atmanirbhar Laghubitta Bittiya Sanstha, Corporate Development Bank, and Laxmi Unnati Fund were the session's biggest losers.

Market observers believe the Prime Minister's positive remarks have restored some investor confidence. However, they note that sustained momentum will depend on concrete policy reforms, regulatory improvements, and consistent implementation of capital market-friendly measures.