Indian shares reversed intraday losses and extended their winning streak for a third week in a row on Friday, aided by financials and auto stocks, ahead of domestic retail inflation data.

The Nifty 50 closed 0.10 per cent higher at 18,314.80, while the S&P BSE Sensex rose 0.20 per cent to 62,027.90. Both benchmarks logged weekly gains of more than 1 per cent.

Seven of the 13 major sectoral indexes advanced, with the high weightage financials rising over 0.5 per cent.

Auto climbed 0.77 per cent on a nearly 6 per cent rise in Eicher Motors Ltd after its fourth-quarter profit beat estimates.

The metal index lost over 1.8 per cent, after data on US jobless claims and producer prices signalled a potential slowdown in the world's largest economy. Weak macro data from China, the world's largest producer and consumer of metals, also added to the concerns.

Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services, advised investors to "utilise a buy-on-decline strategy in the broader markets."

"With frontline indexes taking a breather, midcap and smallcap stocks are witnessing active participation," reiterated Vaishali Parekh, vice president - technical research at Prabhudas Lilladher.

Also read: Retail inflation for April expected to be below 5 per cent: economists

The mid-cap and small-cap indexes have gained for seven consecutive weeks in a row. Analysts expect the benchmark to remain rangebound over the next few weeks after the recent rise.

Investors await domestic retail inflation data for April, scheduled to be released at 5:30 p.m. IST. India's consumer inflation likely cooled to an 18-month low of 4.80 per cent in April, according to a Reuters poll of economists.

Among individual stocks, Max Healthcare Institute Ltd surged over 3 per cent after index provider Morgan Stanley Capital International (MSCI) added the stock to its India Standard Index following a quarterly rejig.

Meanwhile, Adani Total Gas Ltd, Adani Transmission Ltd and Indus Towers Ltd lost between 2 per cent and 5 per cent after being removed from the index.