Benchmark indices on Friday settled marginally lower in a sign of consolidation as investors discounted the 25 basis point cut in interest rates by the US Federal Reserve amid relentless selling by foreign portfolio investors.

The 30-share Sensex lost 55.47 points or 0.07 per cent to end at 79486.32 after tanking 424.42 points or 0.53 per cent to a day’s low of 79117.37. The broader Nifty dipped 51.15 points to 24148.20.

Wall Street opened on a muted note on Friday as a rally powered by a sweeping Trump win and an expected interest-rate cut paused, with the main stocks indexes set for strong weekly gains.

The Dow Jones Industrial Average rose 39.2 points, or 0.09 per cent, at the open to 43768.53. The S&P 500 rose 3.7 points, or 0.06 per cent, at the open to 5976.76​, while the Nasdaq Composite dropped 14.3 points, or 0.07 per cent, to 19255.14 at the opening bell.

Markets were also unimpressed by a stimulus package unveiled by the Chinese government.

Metals came under pressure after a Chinese official said the country would let local governments issue an additional 6 trillion yuan ($837.7 billion) in bonds to swap for off-balance sheet or "hidden" debt of its local governments over three years.

Analysts at Jefferies had noted before the announcement that "anything less than 10 trillion yuan would be a disappointment."

In India, though the rate cut by the Fed met expectations, uncertainty arose
on whether the US Federal Open Markets Committee (FOMC), the interest rate setting panel, will follow up with another revision in December.

The FOMC said that while inflation has made progress towards its 2 per cent target, it still remains elevated.

"After gyrating nearly 700 points in early trade, markets moved in a range-bound manner thereafter and ended marginally lower on selective selling in banking, telecom, metal, oil & gas and realty stocks,’’ Prashanth Tapse, senior VP (Research), Mehta Equities Ltd, said.

"Despite recovery in global indices, Indian markets continue to bore the brunt of FPI fund outflows. The US Fed rate cut failed to enthuse local investors as the undertone remains cautious with a negative bias,’’ he added.

From the Sensex pack, Asian Paints, Tata Steel, State Bank of India were the biggest laggards falling up to 2.61 per cent.

At the forex markets, the rupee closed flat at 84.38 against the dollar. Besides FPI outflows, overnight gains in crude oil prices weighed on the rupee.