Indian shares trim weekly losses on Fed-fueled rebound; inflation data on tap

Indian shares advanced on Friday, extending the previous session’s U.S. Federal Reserve-led rebound that helped cap weekly losses.

Focus is now on the domestic retail inflation data due after market hours. According to a Reuters poll, retail inflation for November is expected to have inched up from October’s record low.

The Nifty 50 rose 0.57% to 26,046.95, while the BSE Sensex added 0.53% to 85,267.66, after gaining about 0.5% on Thursday.

However, the indexes logged 0.5% weekly fall, as investors booked profits near record highs in the first three sessions this week.

Metals led the charge on Friday, climbing 2.6%, on demand optimism after top consumer China pledged a fiscal boost for 2026 and the Fed cut interest rates.

The Fed’s 25-basis-point rate cut on Wednesday came with a less-hawkish tone and rising concern over slowing growth and a softening labour market.

“The Fed signalled precedence to the labour market over still somewhat elevated inflation, and the market could be staring at a more dovish tilt in the months ahead, which is positive for emerging markets such as India,” said Ankita Pathak, macro strategist and global equities fund advisor at Ionic Asset.

Meanwhile, uncertainty over India-U.S. trade talks and persistent foreign selling dulled risk appetite and dragged the rupee to a record low against the dollar.

Prime Minister Narendra Modi said he spoke with U.S. President Donald Trump on Thursday as New Delhi pushes for relief from 50% U.S. tariffs on key exports.

Eleven of the 16 major sectors logged weekly losses. Small-caps and mid-caps declined 0.7% and 0.5%, respectively.

Among stocks, IndiGo slumped 9.5%, the worst Nifty performer this week, under pressure from regulatory scrutiny after thousands of flight cancellations.

Tata Steel broke a five-week losing streak, gaining 2.9% on the acquisition of iron ore pellets maker Thriveni Pellets.