Indian equities closed the holiday-shortened week on a positive note, with investor confidence boosted by the RBI’s upbeat growth outlook.
On Friday, the Sensex gained 223.86 points (0.28%) to settle at 81,207.17, while the Nifty rose 57.95 points (0.23%) to close at 24,894.25.
The Nifty extended its pullback for the second straight session, crossing above its key 50-DMA at 24,830 and forming a bullish candle on the daily chart. After last week’s steep correction, the index displayed signs of recovery by closing above the 24,800 mark.
RBI Growth Outlook and Reforms Lift Sentiment
Market watchers said the RBI’s move to upgrade the FY26 GDP growth forecast to 6.8%, along with the announcement of landmark reforms, spurred optimism and boosted the banking sector’s performance.
Vinod Nair, Head of Research at Geojit Investments Ltd., said, “Metals continued their upward momentum, supported by optimism over an anticipated Fed rate cut in October, a softer dollar index, and steady base metal prices.”
Gold extended its safe-haven appeal, while silver gained on strong industrial demand and supply constraints.
Consumer-facing sectors also strengthened on expectations of festive demand. In contrast, IT and pharma lagged due to the lack of progress on the US-India trade pact.
A note by Bajaj Broking Research highlighted that benchmark indices ended the truncated week with nearly 1% gains.
PSU bank stocks contributed significantly to the rally, with the Nifty PSU Bank index rising more than 4% during the week.
On Friday, metals, PSU banks, and consumer durables gained between 1% and 2%, driving market momentum.
The Bank Nifty continued to show strength over the past 3–4 sessions.
Analysts noted the formation of a bullish candle with a higher high and higher low on the daily charts, signalling sustained momentum in large-cap banking stocks.
Looking ahead, analysts expect market momentum to remain supported by robust H2 FY26 earnings and seasonal demand. However, they cautioned that global trade developments and US policy actions could bring short-term volatility.
They added that the Fed’s recent 25-bps rate cut, along with prospects of further easing, is likely to bolster FII inflows into emerging markets, providing additional support to Indian equities.
Also Read: Stock Market Closes Higher On Gains In Banking And Metal Stocks
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