Mumbai, Oct 4 (NationPress) The Indian stock market concluded the holiday-shortened week on a positive note, bouncing back after recent corrections, which bolstered investor confidence thanks to the RBI's optimistic growth outlook, analysts noted on Saturday.

On Friday, the Sensex wrapped up the session at 81,207.17, gaining 223.86 points or 0.28 percent. The Nifty finished at 24,894.25, up 57.95 points or 0.23 percent. The Nifty's recovery continued for the second consecutive session, surpassing its crucial 50-DMA at 24,830 and forming a bullish candle on the daily chart. After last week’s sharp decline, the index showed signs of recovery by closing above the 24,800 threshold.

Market analysts indicated that the RBI's upgrade of the FY26 GDP growth forecast to 6.8 percent and the announcement of significant reforms played a key role in the banking sector's strong performance.

“Metal stocks maintained their upward trend, buoyed by expectations of a Federal Reserve rate cut in October, a weaker dollar index, and stable base metal prices,” commented Vinod Nair, Head of Research at Geojit Investments Ltd.

Additionally, gold maintained its allure as a safe haven, while silver prices increased due to robust industrial demand and supply constraints.

Consumer-focused sectors showed growth amid expectations of festive demand, whereas IT and pharmaceutical sectors lagged due to stagnant progress on the US-India trade agreement, analysts observed.

A report from Bajaj Broking Research indicated that the benchmark indices concluded the shortened week positively, recording gains of nearly 1 percent.

PSU bank stocks also contributed significantly, with the Nifty PSU Bank index surging over 4 percent for the week. In Friday's trading, metals, PSU banks, and consumer durables led the charge, each rising between 1 percent and 2 percent.

The Bank Nifty has shown consistent strength over the past few sessions. The formation of a bullish candle with a higher high and higher low on the daily chart suggests a continuation of the bullish trend, buoyed by large-cap banking stocks.

Looking forward, market momentum is likely to be sustained by robust H2 FY26 earnings and seasonal demand trends, although global trade dynamics and US policy changes could introduce short-term volatility, analysts cautioned.

The recent 25-bps rate cut by the Fed, along with the potential for further easing, is expected to enhance FII inflows into emerging markets, they added.