Market mood turned for the better on the last trading day of the week and is likely to remain upbeat in the forthcoming sessions with most of the speed breakers out of the way.

"The buoyancy is likely to continue. The F&O expiry for the August series is done with and the new series kickstarted on a positive note. With macro-economic factors like drop in inflation and GDP in line with expectations, there are no negative surprises left. Unless nothing goes wrong on the global front, we have nothing to worry about next week," said Sandeep Shenoy, equity strategist at PINC Research.

Investors took a slowing economic growth in their stride and focused on a dip in inflation and encouraging overseas cues. On Friday, Bombay's Stock Exchange's Sensex soared 516.19 points or 3.67 per cent to end at 14,564.53 and National Stock Exchange's Nifty ended at 4,360, up 3.46 per cent or 146 points.

After a five-week long rising streak, inflation rose by 12.40 per cent in the 12 months to Aug 16, below the previous week's 12.63 per cent rise.

India's economy expanded by a slower 7.9 per cent in the first quarter of this fiscal, but it was on expected lines as high interest rates hit key growth engines, especially manufacturing.

Decelerating manufacturing output and power generation pulled down the overall GDP growth to the lowest level in any quarter in over three years. In the year-ago quarter, the economy had grown by 9.2 per cent.

"It was a known fact that growth is slowing down, so it does not matter whether it is 8 per cent or 7.9 per cent," Shenoy added.

On the global front, US economy baffled experts by surging ahead at a 3.3-per cent annual clip in the second quarter, paced by growing exports and a lift from tax rebate cheques, according to a revised estimate of gross domestic product released on Thursday by the Department of Commerce. The better-than-expected economic news sparked a rally on Wall Street on Thursday, which extended to other global markets as well.

"Given the upmove witnessed on the bourses on Friday, value buying is likely to continue. But it all depends on the turn of events in global markets and crude's movement," said Ajay Parmar, head of research at Emkay Global Financial Services.

The stock market will remain closed on Sep 3 on account of Ganesh Chaturthi.

Investors are also looking forward to a positive outcome on the Nuclear Supplier Group's meet on Sep 4-5 in Vienna. After the Aug 21-22 meeting of the NSG failed to arrive at a decision on a waiver to India because of objections by several member countries, External Affairs Minister Pranab Mukherjee had said India would not accept any 'prescriptive conditions' in the revised draft.