Market capitalization record of 2016 bull broken today; NEPSE Index reaches 1,632.17 points making 33 months high with Rs 20.83 kharba Market Cap

The market capitalization is the total market value of the listed companies in the stock exchange. It is computed by multiplying the market price (LTP-Last Traded Price) to the total number of outstanding shares. Similarly, the index of the stock exchange is calculated by dividing the market capitalization of all shares by the base market capitalization and then multiplying by 100.

The highest market capitalization was last recorded on July 27, 2016, when the NEPSE index hit 1,881.45 points. On this historic day, the market capitalization stood at Rs 20.70 kharba. Similarly, the float market capitalization stood at Rs 6.91 kharba.

The market started taking up-turn from the beginning of the year 2020. On January 02, 2020, the index was at 1,166.21 points with a market capitalization of Rs 14.86 kharba. The market started rising and yesterday the NEPSE index reached 1,632.17 points and the market capitalization was recorded at Rs 20.83 kharba. In this short span, the NEPSE index and market capitalization have risen by 39.95% and 41.17% respectively.

Since the market capitalization depends upon the number of listed shares in total and the latest price of those shares. Therefore, sectors such as banks and few insurance companies, hydropower and Nepal Telecom have a higher influence on the total market capitalization. The market capitalization record set in the bull of 2016 has been broken today.