The Nepal Stock Exchange (NEPSE) rebounded on the second trading day of the week, ending a two-session losing streak as investor sentiment improved on expectations of a flexible monetary policy from the Nepal Rastra Bank.

The benchmark NEPSE Index climbed 24.57 points to close at 2,651.68. The Sensitive Index rose 4.33 points, while the Float Index and Sensitive Float Index gained 1.73 points and 1.57 points, respectively.

Market optimism was driven by expectations that the central bank's upcoming monetary policy would include investor-friendly measures aimed at reviving production, boosting demand, and supporting Nepal's sluggish stock market.

Trading activity also improved significantly. A total of 352 listed securities were traded through 72,022 transactions, with 9.52 million shares changing hands. The total daily turnover reached Rs. 4.40 billion, up from Rs. 3.55 billion recorded in the previous trading session.

Kalanga Hydropower again hit the positive circuit limit, with its share price increasing by Rs. 67.30 to close at Rs. 516.40. Likewise, RBB Focus 40 surged nearly 14%, while Sanigad Hydropower gained more than 10.5% during the session.

In terms of turnover, 10% KBL Debenture 2090 topped the market with transactions worth Rs. 207.5 million. It was followed by 10.35% Agriculture Bank Debenture 2083, which recorded nearly Rs. 180 million in turnover, while Global IME Bank generated trading worth over Rs. 165 million.

All 13 sectoral indices ended the day in positive territory. The Trading sector posted the highest gain of 1.89%, while the Banking and Development Bank sectors each advanced by more than 1%