(Corrects paragraph 7 in Dc 12 story to change designation to "head of global investments" from "macro strategist and global equities fund advisor")

Dec 12 (Reuters) - 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. [MET/L]

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, head of global investments 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. [INR/]

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.

(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sumana Nandy, Nivedita Bhattacharjee and Eileen Soreng)

By Bharath Rajeswaran