BENGALURU, Nov 24 (Reuters) - Indian shares were flat on Friday, weighed down by a drop in information technology (IT) stocks after a recent rally.

The NSE Nifty 50 index fell 0.05% to 19,791.40 points and the S&P BSE Sensex was down 0.06% at 65,975.86, respectively, as of 10:06 a.m IST.

Both the benchmarks, however, are set for their fourth straight weekly gains on expectations that interest rates have peaked in the U.S. and Europe.

"Momentum remains intact for domestic equities. But the Nifty 50 may witness further consolidation as some investors may be sitting on the sidelines ahead of the state assembly election results," said Pramod Gubbi, founder of Marcellus Investment Management.

Results of five Indian state elections will be announced on Dec. 3, which could decide the trajectory of the markets in the run-up to the national elections in 2024, three analysts said.

IT lost 0.42%. IT companies, which earn a significant share of their revenue from the U.S., rose 6.30% in six sessions since Nov. 14 when soft U.S. inflation data spurred bets that the Federal Reserve may be done raising interest rates. But the rally seems to have fizzled out, with the index losing about 1% in the last two sessions.

Pharma, which lost 1.57% in the previous session dragged by Cipla after U.S. drug regulator's warning letter was made public, rebounded 1.2%.

Cipla, Divi's Laboratories and Dr Reddy's Laboratories rose between 1.3% and 2%, and were the top Nifty 50 gainers.

Among individual stocks, Lupin gained 2.4% on U.S. FDA approvals for cataract and diabetes drugs.

NMDC gained 2.2% after it increased the prices of lump iron ore.

Paytm operator One 97 Communications lost 3% after 15.76 million shares, aggregating to about 2.5% equity, changed hands in two blocks, LSEG data showed.

(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Eileen Soreng, Dhanya Ann Thoppil and Nivedita Bhattacharjee)