* NSE index down 0.12 pct, BSE index 0.05 pct lower
* Aurobindo Pharma declines to nine-month low
* Market to remain rangebound for some time - analyst
By Aby Jose Koilparambil
Dec 16 (Reuters) - Indian shares swung between gains and losses on Friday as markets looked to settle down after the U.S. Federal Reserve issued an outlook that was more hawkish than expected, though indexes were still poised to post their biggest weekly fall in a month.
As the dollar stood near a 14-year peak, global markets continued to adjust to the idea of higher U.S. interest rates after the Fed raised rates on Wednesday for the first time in a year and projected three more increases in 2017, up from two forecast in September.
Indian stock markets look more vulnerable than other emerging markets due to the ongoing demonetisation drive and its possible heavy impact on corporate performances.
"The markets have become highly rangebound in the last one month or so. The Nifty is hardly moving in a 100-point range and the Sensex is moving in a 500-point range. This tight range will continue for some time," said Kunj Bansal, chief investment officer, Centrum Wealth Management Ltd.
"The major triggers - the RBI credit policy and the US Fed decision - are over. Now, the next earliest trigger would be the earnings season, starting in the second week of January. Pending that, the market will remain rangebound."
The broader NSE index was down 0.12 percent at 8,143.20 as of 0536 GMT, and has declined 1.5 percent so far this week, its biggest since the week ended on Nov. 18.
The benchmark BSE index was 0.05 percent lower at 26,404.62, and has shed 0.95 percent so far this week.
Among decliners, Aurobindo Pharma Ltd's shares fell as much as 4.34 percent to a nine-month low as the company was named in a lawsuit alleging it colluded with other drugmakers to fix prices of two commonly used drugs in the United States.
Other drug makers also fell on lingering concerns about potential action from the U.S. Food and Drug Administration. Sun Pharmaceutical Industries Ltd fell as much as 2.52 percent, while Alkem Laboratories Ltd declined up to 1.5 percent. (Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Subhranshu Sahu)