Euro falls on potential ECB rate cut, global stocks slip anew

By Herbert Lash

NEW YORK (Reuters) - Global equity markets slipped on Friday despite upbeat factory data worldwide, while the euro fell to a two-week low against the dollar on expectations that a rate cut by the European Central Bank is possible by the end of the year.

Stocks on Wall Street edged lower after data showing U.S. manufacturing expanded briskly in October raised some worries that the U.S. Federal Reserve may scale back its massive stimulus much sooner than expected.

U.S. equities have been pressured since a Fed statement on Wednesday raised concerns about when the central bank would begin to scale back its stimulus program, which has fueled the benchmark S&P 500 index's 23-percent rally this year.

The Institute for Supply Management (ISM) said its index of U.S. factory activity rose to 56.4 last month - its best showing since April 2011 - from 56.2 in September. Economists polled by Reuters had expected a reading of 55.

The S&P and Dow Jones industrial average have repeatedly hit record highs this year, including earlier in the week, but the strong gains have triggered some concerns about how much further the rally can continue, especially in light of tepid corporate revenue growth.

With almost three-fourths of S&P 500 companies reporting results so far, 68.5 percent have beaten profit expectations, above the long-term average of 63 percent, according to Thomson Reuters data. However, only 53.3 percent have topped revenue forecasts, below the 61 percent average since 2002.

"I'm not comfortable with the market at all-time highs, especially with earnings being mediocre," said Mark Grant, managing director at Southwest Securities in Fort Lauderdale, Florida.

"But the manufacturing report was better than expected, and where else can you go with the Fed putting so much liquidity into the system?" Grant said.

The Dow Jones industrial average was up 30.57 points, or 0.20 percent, at 15,576.32. The Standard & Poor's 500 Index was down 0.28 points, or 0.02 percent, at 1,756.26. The Nasdaq Composite Index was down 7.57 points, or 0.19 percent, at 3,912.13.

European stock markets eased off five-year highs amid signs of weakness in regional corporate earnings.

The pan-European FTSEurofirst 300 index of leading European companies fell 0.31 percent to close at 1,288.67.

U.S. Treasuries prices fell for a third consecutive session as the encouraging ISM report on manufacturing suggested the U.S. economy overcame a drag from the partial government shutdown in October.

The rosier data revived some worries among investors that the Fed might scale back its bond-buying earlier than expected - at its December meeting - rather than early in 2014.

"There is a feeling that they might taper in December. It has gained a little steam, but that's not the consensus," said Matt Duch, a portfolio manager at Calvert Investments in Bethesda, Maryland.

The benchmark 10-year U.S. Treasury note was down 19/32 in price to yield 2.6108 percent.

Euro zone bonds broadly edged higher, extending this week's rise, after data showed a surprisingly sharp inflation slowdown in the euro zone. Many in the market expect the ECB to signal a rate cut or new liquidity injections at its meeting next week.

German two-year yields, the most sensitive to shifts in monetary policy expectations, were 1 basis point lower at 0.11 percent,

Bund futures fell 15 ticks to settle at 141.85, having hit a two-month peak of 142.32 on Thursday.

Expectations of an ECB rate cut was seen eroding the euro's interest rate advantage over other major currencies. The single currency was poised to notch its worst weekly loss against the dollar since July 2012.

The euro fell 0.74 percent to $1.3482.

Renewed pressure on the euro saw the dollar index rise to a six-week high of 80.785, climbing further up from a nine-month trough of 78.998 plumbed a week earlier. It last traded at 80.777.

The dollar was up 0.43 percent against the yen at 98.77 yen, according to Reuters data.

Brent crude oil dropped by more than $2 to below $107 a barrel as a strong dollar outweighed previous concerns over a drop in Libyan crude exports.

Brent crude for December delivery was down by $2.14 at $106.70 after rising as high as $109.41 a barrel in early trading.

U.S. oil for December was down $1.37 at $95.01, putting it in line for a fourth straight week of declines, its longest losing streak since June 2012.

(Reporting by Herbert Lash; Editing by Bernadette Baum)

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Dhanteras gold demand falls at least 20 percent this year

New Delhi/Chennai/Mumbai, Nov 1 (IANS) Come Dhanteras and Indians are ready to shell out that extra bit to purchase gold on the auspicious day. But demand has fallen by at least 20 percent this time as most people have made the bulk of their purchases earlier in the year when prices were much lower, say market cognoscenti on the occasion of the festival Friday.

"Though people are coming to the shops but overall sales are low. Demand has fallen by 20 percent in Delhi this year during Dhanteras as many people have bought gold during April-May when the price fell considerably to around Rs.25,000 per 10 grams," Rahul Gupta, chief executive officer of PP Jewellers told IANS. Gold currently retails at around Rs.32,000 per 10 grams in Delhi.

Gupta also mentioned that there is supply crunch in the market after the government hiked the duty on gold to 15 percent to curb its import as it was causing an imbalance in the current account deficit.

Dhanteras comes on the 13th day of the dark fortnight in the Kartik month (according to Hindu calender). It is also the day for celebrating wealth as the word 'Dhan' literally means wealth and 'Tera' comes from the date 13th.

Dhanteras holds special significance for the business community due to the customary purchases of precious metals on this day.

Jayantilal Challani, president of Madras Jewellers and Diamond Merchants Association and a partner in Challani Jewellery Mart told IANS: "Sales volume is certainly down atleast by 30 percent as per our information. The footfall in the shops are high but per ticket sales volume is low across the country is what we hear."

Even N. Anantha Padmanabhan of NAC Jewellers told IANS: "Sales are expected to be good today. But they will be down by 30-40 percent as compared to last year."

Though inflation and high prices of gold restricted the buyers, overall the market recorded between 50-60 percent sales as compared to last year, Ashok Minawala, former chairman of Gems & Jewellery Trade Federation said in Mumbai.

"As always, gold continued to be popular with the people and despite the drop in volume sales as compared to last year, the market is happy," Minawala explained.

Surprisingly, this year middle-end diamonds and diamond jewellery found takers, especially in the Rs.50,000-150,000 range, he added.

Another expert and former chairman of All India Gems & Jewellery Federation Bachharaj Bamalwa said the slight fall in the price of the precious yellow metal in the international markets Thursday had contributed to the positive mood among the buyers.

However, Gora Roy Chowdhury, director of Kolkata's MP Jewellers, felt customers are confused about the gold industry and that is definitely impacting sales by 30-35 percent this Dhanteras.

"The price volatility is definitely impacting the people, coupled with various freebies offered by many jewellers along with gold. People are confused and they often don't understand which product to go for - gold or freebies," Roy Chowdhury told IANS.

He rued the fact that nowadays people do not buy gold with seriousness of owning a jewellery. "They buy it for the sake of buying and are more attracted towards the freebies."

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Gold falls on dollar rise, awaits Fed statement

By Frank Tang and Clara Denina

NEW YORK/LONDON (Reuters) - Gold fell on Tuesday, retreating from the previous session's five-week high, as a dollar rise and encouraging U.S. consumer spending data prompted investors to take profits ahead of a policy decision by the U.S. Federal Reserve.

Bullion prices slipped after a gauge of U.S. consumer spending rose in September, but falling car sales pointed to sluggish economic growth.

The Fed began a two-day policy meeting in which it is widely expected to confirm it will continue buying bonds at the rate of $85 billion a month in a policy statement on Wednesday.

"Investors are keen to see what the Fed will say with regard to the softening seen in some of the recent U.S macro data and whether this will impact the central bank's tapering timeline," said Edward Meir, metals analyst at futures brokerage INTL FCStone.

Many economists say the Fed could push tapering to March next year.

Spot gold was down 0.5 percent to $1,344.89 an ounce by 2:40 p.m. EDT (1840 GMT).

It hit its highest since September 20 at $1,361.60 on Monday, as disappointing U.S. manufacturing and pending home sales data reinforced the view the economy is not yet strong enough for the Fed to start tapering stimulus.

U.S. gold futures for December delivery settled down $6.70 an ounce at $1,345.50, with volume about 15 percent below its 30-day average, preliminary Reuters data showed.

Gold prices have fallen nearly 20 percent this year in the expectation of imminent tapering by the Fed.

The metal has gained 8 percent over the past two weeks, as a budget battle in Washington and a string of weak economic data have raised questions over whether it will scale back monetary stimulus, giving bullion a boost.

ASIAN DEMAND WEAK

Physical demand could take a hit on signs of slower buying by Asian investors and jewelers.

Chinese gold prices closed lower than global prices on Tuesday for the first time this year, traders said, as fears of a credit tightening prompted investors to sell bullion for cash.

As a gauge of investor interest, holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Shares, remained unchanged at 872.02 tonnes on Monday after falling 4.5 tonnes on Friday.

Among other precious metals, silver eased 10 cents to $22.46 an ounce. Platinum was down 1.1 percent to $1,454.50 an ounce, while palladium eased 0.1 percent to $742.72.

(Additional reporting by A. Ananthalakshmi in Singapore; Editing by James Jukwey and Marguerita Choy)

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BSE Sensex falls 113 points; rate-sensitives decline

By Abhishek Vishnoi

MUMBAI (Reuters) - The BSE Sensex fell on Monday for a fifth consecutive session to mark its lowest close in nearly 1-1/2 weeks, as lenders and other interest rate-sensitive shares declined a day before the Reserve Bank of India's monetary policy review.

The RBI is expected to raise its lending rate by a quarter percentage point for a second straight month to combat inflation despite the country's sputtering economic growth, a Reuters poll showed.

Traders said that risk aversion was also pronounced ahead of the U.S. Federal Reserve policy meeting on October 29-30 and the expiry of the October derivative contracts on October 31.

However, foreign investors remained net buyers for a 16th consecutive session. Provisional exchange data showed a net purchase of 6.27 billion rupees worth of shares on Friday, bringing the total to nearly 134.2 billion rupees during that period.

"The market felt jitters ahead of the RBI policy meeting. And a 25 bps repo rate hike is widely expected by the Street. What would be interesting is other news that RBI comes out with, in terms of fresh developments in the banking sector," said Milan Bavishi, head of research at Inventure Growth and Securities.

The benchmark BSE Sensex fell 0.55 percent, or 113.24 points, to end at 20,570.28, a fifth straight session of fall after a string of near-three year highs last week.

The broader Nifty fell 0.71 percent, or 43.80 points, to end at 6,101.10.

Banking stocks fell on risk aversion ahead of the RBI's policy review, although the central bank is expected to further ease short-term interest rates.

State Bank of India Ltd fell 2.7 percent, while Bank of Baroda Ltd slumped 4.3 percent.

Private sector banks also fell, with HDFC Bank Ltd and ICICI Bank Ltd down 0.7 percent each.

Among real estate developers, DLF Ltd fell 3.3 percent, while Unitech Ltd ended 3.2 percent lower.

Consumer goods shares fell as July-September sales volume growth was seen muted, analysts said. ITC Ltd slumped 3.6 percent on Monday after its quarterly results on Friday.

The sectoral fall dragged down Hindustan Unilever Ltd , which ended 0.8 percent lower after earlier rising as much as 4.2 percent after sales volumes grew in line with expectations.

Colgate Palmolive India Ltd shares fell 3.8 percent after its July-September net profit fell by 24.5 percent.

Shares of Sun Pharmaceutical Industries Ltd fell 1.2 percent after Bloomberg News reported the drug maker had received queries from the U.S. Food and Drug Administration over quality control at a U.S. subsidiary.

Among the gainers, Indian finance companies which provide loans against gold rallied on speculation that the central bank may allow them to lend 75 percent of the value of jewellery compared with 60 percent earlier, traders said.

Shares of Manappuram Finance Ltd and Muthoot Finance Ltd rose 5 percent to hit their daily upper trading limit.

(Editing by Prateek Chatterjee)

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Sensex falls for 4th straight day; capital goods decline

Mumbai, Oct 25 (IANS) A benchmark index of Indian equities markets fell for the fourth consecutive day Friday by 42 points or 0.20 percent as capital goods stocks faced selling pressure.

The 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 20,725.52 points, closed at 20,683.52 points, down 41.91 points or 0.20 percent from the previous day's close at 20,725.52 points.

The Sensex touched a high of 20,782.16 points and a low of 20,622.55 intra-day.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) also closed in the negative territory. It ended at 6,144.90 points, down 19.45 points or 0.32 percent.

"Markets traded in a narrow range for the entire week after witnessing significant gains in the October series," said Sahaj Agrawal, deputy vice president - derivatives research, Kotak Securities.

Healthy buying spree was observed in information technology (IT), technology, entertainment and media (TECk) and consumer durables stocks. However, heavy selling pressure was observed in automobile, metal and capital goods.

The S&P BSE IT index gained 128 points, while TECk index was up 46.27 points and the consumer durables index was higher by 14.5 points.

However, capital goods index was lower by 145.53 points; automobile index was down 141.45 points; and metal index moved lower by 110.85 points.

The major Sensex gainers were Tata Consultancy Services (TCS), up 2.92 percent at Rs.2,067.30; Wipro, up 2.07 percent at Rs.481.05; Sesa Sterlite, up 1.84 percent at Rs.202.20; NTPC, up 1.36 percent at Rs.145.20; and Infosys, up 0.64 percent at Rs.3,331.

The losers in the day's trade were Hindalco Inds, down 4.71 percent at Rs.109.15; Tata Steel, down 3.09 percent at Rs.321.85; Mahindra and Mahindra (M&M), down 2.48 percent at Rs.867.70; Hindustan Unilever, down 2.33 percent at Rs.594.20; and Gail India, down 2.23 percent at Rs.343.55.

Among the Asian markets, Japan's Nikkei closed 2.75 percent down, Hong Kong's Hang Seng was down 0.60 percent, and China's Shanghai Composite Index moved lower by 1.45 percent.

In Europe, London's FTSE 100 was trading 0.16 percent higher, and Germany's DAX Index was up 0.07 percent. The French CAC 40 Index was, however, lower by 0.12 percent.

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Rupee falls; custodial banks buy dollars ahead of policy

Reuters Market Eye - The rupee falls on dollar buying by custodial banks ahead of the Reserve Bank of India's review on Tuesday. The rupee falls to 61.64/65, off 61.44 highs, versus last close at 61.46/47.

"Today's spot will be settled on Tuesday which is the policy day. So, we are seeing a spurt in buying interest by foreign banks," says dealer.

The Reserve Bank of India policy on Tuesday likely be the next trigger with any hike in the repo rate to negatively impact the INR.

Foreign funds extend buying in local stocks for a 15th session, being provisional buyers of $161.5 million on Thursday, exchange data showed.

The dollar struggled near a two-year low against the euro in early Asian trade on Friday, as strengthened expectations the U.S. Federal Reserve will maintain its asset purchases through early next year undermined the greenback.

A Reuters poll shows that investors raise long positions in Asia FX.

Technicals show USD/INR may see a relief rally.

(Reporting by Subhadip Sircar)

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Wall Street ends down as Caterpillar falls, Boeing rallies

By Julia Edwards

NEW YORK (Reuters) - U.S. stocks fell on Wednesday as shares of heavy-equipment maker Caterpillar and semiconductor companies tumbled after they reported earnings, ending the S&P 500's four-session streak of record high finishes.

Results from Caterpillar Inc and Boeing Co , two Dow components, illustrated the quarter's mixed picture of corporate results and outlooks, which have some investors worried.

Caterpillar was one of the biggest decliners on the S&P, slumping 6.2 percent to $83.62 after the manufacturer cut its full-year outlook for a third time and its profit missed expectations. That sent shares tumbling by the most in a day since September 2011.

"There's not a lot of room for error as earnings are growing at such a slow pace, particularly for a globally focused company like Caterpillar, which has been a proxy for global GDP in global markets," said Erik Davidson, deputy chief investment officer at Wells Fargo Private Bank. "It's no secret the rest of the world has suffered, so therefore a company like Caterpillar is going to suffer."

On the upside, Boeing surged 5.3 percent to $129.02 after airplane maker reported a rise in adjusted profit and raising its full-year forecast.

After the market closed, both AT&T and TripAdvisor reported revenue that was slightly below Wall Street's estimates. AT&T's revenue grew from the previous quarter to $32.16 billion compared with Wall Street estimates for $32.19 billion, according to Thomson Reuters I/B/E/S data.

TripAdvisor's revenue rose 20 percent to $255.1 million in the third quarter, below analysts' expectations of $255.9 million. TripAdvisor shares in extended-hours trading were up 5 percent to $79.25 after closing down 0.3 percent at $75.21 in the regular session. AT&T shares were flat.

About one-third of S&P 500 companies have reported thus far, with 66.3 percent topping profit expectations, a rate that is slightly higher than the historical average. Roughly 54 percent have beaten on revenue, below the 61 percent long-term average. Investors worry that much of the growth in earnings has not been generated by revenue.

"Finally the markets are focused on earnings after having been focused on many other things," Davidson, who called third quarter results released so far "tepid."

The semiconductor sector <.sox> dropped 3.4 percent a day after Broadcom , Altera and RF Micro Devices joined Intel and Texas Instruments in lowering their forecasts.

Broadcom shares fell 2.9 percent to $26.36, Altera lost 13.5 percent to $32.30 and RF Micro lost 8.6 percent to $5.63.

The Dow Jones industrial average was down 54.40 points, or 0.35 percent, at 15,413.26. The Standard & Poor's 500 Index was down 8.31 points, or 0.47 percent, at 1,746.36. The Nasdaq Composite Index was down 22.49 points, or 0.57 percent, at 3,907.07.

The S&P 500 closed at an all-time high on Tuesday, its fourth-straight record finish. The index is up 22 percent for the year up to Tuesday, not far from the 23.5 percent advance in 2009.

On Wednesday, 53 percent of total shares traded were declining.

Global equity markets weakened as China's primary short-term money rates rose on concerns the People's Bank of China may tighten its cash supply to counter inflation risks, which could hurt growth in the world's second-largest economy.

Also weighing on sentiment, the European Central Bank said it would put major euro zone banks through rigorous tests next year to build confidence in the sector. Some analysts said that if the review reveals unexpected problems, investor confidence could be undermined.

Netflix shares were up 2.4 percent to $330.24 following a large selloff on Tuesday when billionaire investor Carl Icahn cut his stake in the company.

(Editing by Bernadette Baum, Nick Zieminski and Kenneth Barry)

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Symantec forecast falls short of estimates as PC market weakens

REUTERS - Symantec Corp, maker of Norton anti-virus software, reported lower-than-expected second-quarter revenue and forecast third-quarter results below expectations, hit by low demand for storage and security products and a weak PC market.

Symantec shares were down 12.5 percent in extended trading.

The company said it expects third-quarter adjusted earnings of 41 cents to 43 cents per share on revenue of $1.63 billion to $1.67 billion.

Analysts were looking for earnings of 51 cents per share, on revenue of $1.79 billion, according to Thomson Reuters I/B/E/S.

Symantec's consumer business sells products and services to individuals and home businesses globally through e-commerce platform, internet-based resellers and retailers.

The company also has partnerships with original equipment manufacturers to distribute internet security suites and online backup offerings.

"They've had growth challenges both on the security and on the storage front, and the consumer PC environment is not great, and they're heavily tied to that market," FBR Capital Markets analyst Dan Ives told Reuters.

Net income rose to $241 million, or 34 cents per share, in the second quarter, from $189 million, or 27 cents per share, a year earlier.

Excluding items, the company earned 50 cents per share.

Revenue fell 3.5 percent to $1.64 billion.

Analysts on average were looking for adjusted earnings of 44 cents per share on revenue of $1.69 billion.

Revenue from the company's information management business, which accounted for about 37 percent of total revenue in the second quarter, fell 5 percent.

The business helps companies manage information by providing backup and recovery, archiving and storage management. (Reporting by Chandni Doulatramani in Bangalore; Editing by Don Sebastian)

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BSE Sensex edges lower; Hero MotoCorp falls

By Abhishek Vishnoi

MUMBAI (Reuters) - The BSE Sensex edged lower on Tuesday, backing away slightly from near three-year highs hit in the previous session, as Hero MotoCorp fell a day ahead of its quarterly earnings, while caution prevailed ahead of a key U.S. monthly jobs report.

The U.S. non-farm payrolls report later in the day may help calibrate bets on when the Federal Reserve would start the expected tapering of its monetary stimulus.

At home, traders are also growing cautious ahead of earnings from major companies such as ICICI Bank and ITC Ltd , while the Reserve Bank of India is due to hold its policy review on October 29.

Still, sentiment remains buoyed as foreign investors continue to purchase Indian shares, remaining net buyers for a twelfth consecutive session on Monday for a combined total of 103.1 billion rupees, according to regulatory and exchange data show.

"Earnings from better business except pharmaceuticals are out, so expect some short-term correction given recent gains" said Paras Adenwala, managing director and principal portfolio manager at Capital Portfolio Advisors.

The benchmark BSE Sensex edged down 0.14 percent, or 28.92 points, to end at 20,864.97 after hitting its highest level since November 2010 on Monday.

The broader Nifty drifted down 0.03 percent, or 2.15 points, to end at 6,202.80.

Hero MotoCorp Ltd fell 1.6 percent ahead of its July-September earnings due on Wednesday.

Hero may miss the consensus operating profit forecast for the July-September quarter, according to Thomson Reuters StarMine data.

Reliance Industries Ltd fell 1 percent on profit-taking after rising more than 5 percent in the last three consecutive sessions until Monday.

Wockhardt Ltd fell 4 percent after Britain's drug regulator revoked the quality compliance certificate for one of its factory in India, the drugmaker said on Tuesday, the third of its plants to be hit by export restrictions this year.

Karnataka Bank Ltd fell 5 percent after its September quarter profit plunged 75 percent to 289.5 million rupees.

However among stocks that gained, Yes Bank Ltd rose 3.7 percent after its net profit rose 21.2 percent to 3.71 billion rupees, beating analysts' estimates.

Indian sugar companies rallied after global raw sugar futures spiked to a one-year high after a fire engulfed four warehouses in Brazil's Santos port, jeopardizing a fifth of monthly exports from the top producer's main terminal.

Shree Renuka Sugars Ltd surged 10.3 percent, Bajaj Hindusthan Ltd gained 4.2 percent, while Balrampur Chini Mills Ltd rose 1.5 percent.

Wipro Ltd rose 1.7 percent.

(Editing by Anand Basu)

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Goldman Sachs profit falls 2 pct as trading revenue slumps

REUTERS - Goldman Sachs Group Inc's third-quarter profit fell 2 percent as weak bond-trading volumes hit revenue in its biggest business, pushing down the bank's shares in premarket trade.

Revenue from Goldman's fixed income, currency and commodities (FICC) business, which undertakes trading for clients, fell 44 percent to $1.25 billion in the quarter ended September 30.

The fifth-largest U.S. bank by assets reported a profit of $1.43 billion, or $2.88 per share, beating the average analyst estimate of $2.43, according to Thomson Reuters I/B/E/S.

In the year-earlier period, the bank earned $1.46 billion, or $2.85 per share.

Goldman's shares fell 2.5 percent to $158.23 in premarket trading despite the stronger-than-expected earnings and an increase in quarterly dividend to 55 cents per share from 50.

"The third quarter's results reflected a period of slow client activity," Chairman and Chief Executive Lloyd Blankfein said in a statement.

Fixed-income trading was muted for several weeks leading up to the Federal Reserve's meeting in mid-September amid speculation that the central bank was about to start winding down its bond-buying stimulus program.

Goldman was not the only Wall Street bank to be stung by weak fixed-income trading. However, it is more reliant on trading income than its bigger rivals, which have significant consumer banking operations.

JPMorgan Chase & Co's trading revenue fell 8 percent in the latest quarter, while Citigroup Inc's dropped 26 percent and Bank of America Corp's about 20 percent.

Revenue from Goldman's own investments also fell. Revenue from loans and principal investments slid 18 percent to $1.48 billion.

Equity trading revenue dropped 18 percent to $1.62 billion, while investment banking advisory revenue slid 17 percent to $423 million. However, underwriting revenue rose 13 percent $743 million.

(Reporting by Lauren Tara LaCapra in New York and Tanya Agrawal in Bangalore; Editing by Ted Kerr)

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BSE Sensex falls for second session; tech shares slump

By Abhishek Vishnoi

MUMBAI (Reuters) - The BSE Sensex fell on Thursday for a second consecutive session, as software services exporters such as Tata Consultancy Services slumped despite its quarterly results beating estimates as investors took profits after strong recent gains.

Traders said the July-September results had already been factored into share prices, with TCS hitting a record high on Tuesday and investors already looking ahead at earnings from other sectors that are expected to be weaker.

Meanwhile, market relief at an 11th-hour U.S. budget deal gave way to worries over the economic impact of the 16-day government shutdown and prospects of a re-run early next year.

"The better results of Nifty have come. So don't generalise Nifty results on the basis of the likes of Infosys, TCS, IndusInd Bank etc. The ones that will come in later are going to surprise negatively," said Jyotheesh Kumar, executive vice president of HDFC Securities.

The Sensex fell 0.64 percent, or 132.11 points, to end at 20,415.51, for a second day of falls after climbing to its highest intraday level since November 2010 on Tuesday.

The broader Nifty fell 0.71 percent, or 43.20 points, to end at 6,045.85.

TCS fell 4.8 percent after hitting an all-time high of 2,258.85 rupees on Tuesday, and Infosys Ltd ended 2.6 percent lower as investors took profits.

TCS said late on Tuesday its consolidated net profit for the quarter rose 34 percent to 47 billion rupees compared with an average of 44.

HCL Technologies Ltd slumped 6.

Among other IT stocks, Wipro Ltd fell 3.1 percent, while Tech Mahindra Ltd ended 3.4 percent lower.

Larsen and Toubro Ltd fell 4 percent on caution ahead of its September quarter results on Friday.

Credit Suisse downgraded Larsen and Toubro to "underperform" from "neutral" and cut the price target to 713 rupees from 955 rupees, saying it expects the company's domestic order flow to have slowed down.

Tata Motors Ltd fell 4 percent, heading for its second day of decline after hitting a record high of 393.30 rupees on Monday.

South Indian Bank Ltd shares fell 1.2 percent after the lender said non-performing loans rose to 1.39 percent in July-September versus 0.86 percent a year earlier.

Among the gainers, Bajaj Auto Ltd , India's second-largest motorcycle maker by sales, rose 1.3 percent after the company reported July-September profit that beat analyst estimates.

Apollo Tyres Ltd shares rose 2.6 percent after the company said on Monday its lenders were unlikely to approve its bid for U.S.-based Cooper Tire & Rubber Co unless the $2.5 billion price tag was cut to take account of unresolved labour disputes.

(Editing by Prateek Chatterjee)

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