India rupee falls on oil demand; Bharti Infratel inflows watched

Mon Dec 10, 2012 5:22pm IST

Related Topics

* Rupee ends at 54.49/50 per dollar vs 54.47/48 on Friday

* Dealers position for inflows from Bharti Infratel share sale

* USD demand from oil, gold importers keeps INR gains in check

By Subhadip Sircar

MUMBAI, Dec 10 (Reuters) - The Indian rupee fell marginally on Monday on continued dollar demand from oil importers, but the losses were capped by expectations of inflows from a spate of share sales.

Bharti Infratel, the telecommunications tower unit of top Indian phone carrier Bharti Airtel Ltd, is set to raise up to $825 million in what would be the country's biggest initial share offering in two years.

The share sale will begin on Tuesday and close on Friday.

This is likely to be followed by a stake sale by the government in NMDC Ltd. The government expects to raise roughly $1.2 billion by selling a stake in the state-run miner.

The government has also raised the limit in government and corporate bonds for foreigners by $5 billion each, resulting in more inflows once the limits are auctioned.

"I expect about $500 million of inflows between the two IPOs. However, there is continuous dollar demand from oil and gold importers which is not letting the rupee appreciate," said Param Sarma, chief executive at NSP Forex.

The partially convertible rupee closed at 54.49/50 per dollar, weaker than its close of 54.47/48 on Friday.

Globally, the rupee's gains were capped as the euro flirted with two-week lows against the dollar on Monday after Italian Prime Minister Mario Monti offered to resign, raising political uncertainty over who will lead the euro zone's third-biggest economy out of the debt crisis.

The rupee faces resistance at 54.07, its 200-day moving average, charts showed.

In the offshore non-deliverable forwards, the one-month contract was at 54.71, while the three-month was at 55.23.

In the currency futures market, the most-traded near-month dollar/rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange all closed at around 54.69, with total traded volume of $4.5 billion. (Editing by Jijo Jacob)

FILED UNDER:
  • Most Popular
  • Most Shared

Pending Reform

REUTERS SHOWCASE

Power Theft

Power Theft

India to invest $4 billion to tackle power theft  Full Article 

Debt Funds

Debt Funds

India monitors foreign flows into debt funds, may tighten rules  Full Article 

Bulgari Back in India

Bulgari Back in India

CEO: we shouldn’t have left India so we’re back  Full Article 

 Hindu "Modi-fication"

Hindu "Modi-fication"

Fears grow about Hindu "Modi-fication" of education  Full Article 

Weak Credit

Weak Credit

Hard to hit tax revenue target, credit weak - Jaitley  Full Article 

China Rate Cut

China Rate Cut

China surprises with interest rate cut to spur growth  Full Article 

Gold Imports

Gold Imports

RBI cautious on response to gold import surge  Full Article 

Economic Corridor

Economic Corridor

China commits $45.6 billion for economic corridor with Pakistan  Full Article 

Overseas Funds

Overseas Funds

RBI says overseas borrowed funds can be parked with banks in India  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage