* BSE index falls 0.02 pct; NSE ends 0.03 pct lower
* GDP and fiscal deficit data due on Friday
* Indian sugar firms' shares surge on hopes of govt aid
BSE Sensex ends almost flat ahead of F&O expiry, GDP data
(Reuters) Indian shares edged down on Wednesday as software services exporters such as Infosys were hit by a strengthening rupee, while broader sentiment remained weak due to recent selling by foreign investors.
Foreign funds were sellers of 3.39 billion rupees ($54.27 million) in domestic cash shares and 7.80 billion rupees in equity derivatives on Tuesday, exchange data shows. FIIs have pumped a net $6 billion into cash shares since late August, helping the benchmark BSE index hit a record high on Nov. 3.
Waning risk appetite from foreign investors is reviving concerns about India's vulnerability when the Federal Reserve begins to taper its monetary stimulus given the country's dependence on overseas flows to bridge its current account deficit.
Caution continues to prevail ahead of the expiry of November derivatives contracts on Thursday and gross domestic product and fiscal deficit data on Friday.
"Market is no mood to react on data. It's more a question of liquidity. Election results might swing the mood for a bit but liquidity would be key to watch for long term," said Phani Sekhar, fund manager at Angel Broking.
The benchmark BSE index fell 0.02 percent, or 4.76 points, to end at 20,420.26, marking its second consecutive day of losses.
The broader NSE index fell 0.03 percent, or 2 points, to end at 6,057.10. Software service exporter shares fell after the rupee strengthened to a one-week high against the U.S. dollar tracking gains in a euro currency that gained after German Chancellor Angela Merkel's conservatives reached a deal with Social Democrats on forming a grand coalition.
Infosys Ltd fell 0.7 percent, Wipro Ltd lost 1.1 percent, while Tata Consultancy Services Ltd also ended 0.4 percent lower.
Some bank shares also fell on profit-taking. State Bank of India ended 1.2 percent lower, while Yes Bank Ltd ended 1.7 percent down.
Among other decliners, Wockhardt Ltd slumped 8.3 percent after the U.S. Food and Drug Administration