Capillary rise occurs when water moves upward through the soil pores above the groundwater table due to surface tension.
This results in the development of negative pore water pressure (also known as suction) in the capillary zone.
The effective stress ($\sigma'$) in soil is calculated as:
\[
\sigma' = \sigma - u
\]
Where:
$\sigma$ = total stress
$u$ = pore water pressure
In the case of capillary rise, the pore water pressure $u$ becomes negative.
So, subtracting a negative value (i.e., $-u$) leads to an increase in effective stress.
Hence, capillary action causes the soil particles to be held together more tightly, increasing the effective stress.