The Dipankha Yatra, a Buddhist festival which marks the incarnation of the Gautam Buddha into a blue bull, brings followers of several religions together to offer prayers at monasteries and temples in Kathmandu and nearby Lalitpur.

"It's a rare event and it could not have come at any better time when the nation is bleeding in violence," one of the participants said.

Maoist rebels have waged an insurgency against the ruling monarchy that has claimed more than 12,000 lives since 1996.

In February, King Gyanendra sacked a four-party coalition government for failure to tackle the rebels and seized power, a move that has met with widespread protests from the country's political parties.

Monday's procession came after a gap of 38 years as there is no set timetable for the festival, which is held only when enough people agree to participate, organisers said.

"The ceremony is an example of religious harmony in Nepal," said Dharma Ratna Shakya, chairman of the Dipankha Yatra Organizing Committee.

Organisers said devotees also pray for the welfare of all living beings and offer small idols of bulls made of stone, copper and bronze at temples.