Nepal's stock market staged a strong recovery on Friday, with the NEPSE Index surging 79.74 points to close at 2,677.54.

The sharp rally followed the Nepal Rastra Bank's decision to allow investors to obtain loans of up to 80% of the market value of pledged shares, boosting investor confidence and buying interest.

Out of all listed companies traded during the session, 259 advanced, while only 13 declined. Share prices of two companies remained unchanged, according to the Nepal Stock Exchange.

Despite the strong market rally, total daily turnover stood at Rs 4.575 billion. More than 10.39 million shares changed hands through 58,094 transactions.

Shrinagar Agrotech hit the positive circuit limit, with its share price rising Rs 125 to Rs 963 per share.

Suryakunda Hydro, Shikhar Power, Ridgeline Energy, and Mid Solu Hydro were also among the day's top-performing stocks.

Among sectoral indices, only the Mutual Fund sub-index declined, slipping 0.29%, while the remaining 12 sectors ended the session in positive territory, reflecting broad-based market strength.