for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

Indian rupee seen weak, dlr inflows to support

MUMBAI, Nov 10 (Reuters) - The Indian rupee is expected to open weak on Wednesday weighed by dollar's gains against majors, but fund inflows towards ongoing share sale of Power Grid Corp of India PGRD.BO may prevent any sharp slide.

* The partially convertible rupee INR=IN closed at 44.31/32 per dollar on Tuesday, up from its 44.38/39 previous close. The unit is expected to open around 44.40-44.45, but is not seen falling below 44.50 on dollar inflows. [INR/]

* Foreign funds have so far in 2010 bought shares worth a record $28.3 billion, in addition to last year’s $17.5 billion. The rupee has gained 5 percent so far this year.

* “Given the inflows towards PGC (Power Grid Corp) issue, 44.50 looks protected. We saw good dollar demand from oil companies yesterday and it may continue today also,” said a foreign bank dealer.

* Power Grid Corp of India, the world’s third-largest power transmission company, on Tuesday launched a share sale to raise up to $1.7 billion before it closes on Friday. The sale was fully covered on its first day. See [ID:nBMA008828] and [ID:nSGE6A707O] for related stories.

* Also weak regional equities may add to downside pressure on the rupee.

* At 0319 GMT, the MSCI index of Asian stocks ex-Japan .MIAPJ0000PUS was down 0.83 percent, and the Nifty India stock futures SINc1 traded in Singapore was down 0.56 percent suggesting a lower opening for Indian stocks.

* The U.S. dollar held on to overnight gains to trade at two-week highs in early Asia, with the euro wallowing below $1.3800 on concerns over funding problems among fringe euro zone sovereigns. The dollar .DXY index against six majors was up 0.54 percent. [USD/] (Reporting by Suvashree Dey Choudhury; editing by Malini Menon)

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up