Indian rupee extends fall as shares slide 1 pct

MUMBAI, Nov 3 (Reuters) - The Indian rupee further extended losses in afternoon session on Tuesday, in line with the domestic sharemarket, while a pause in the dollar's slide versus major units also hurt.

* At 1:50 p.m., the partially convertible rupee was at 47.15/16 per dollar, below its previous close of 46.96/97 on Friday. Financial markets were closed on Monday for a holiday.

* Shares .BSESN fell 1 percent in afternoon trade after seesawing earlier in the day. [.BO]

* Portfolio flows into local shares are a key driver of the rupee. Foreigners have bought more than $14 billion of local equities so far this year, after being sellers of more than $13 billion in 2008.

* The dollar index .DXY, a gauge of the U.S. unit's performance versus six majors, was marginally lower, after haivng been down 0.2 percent at the start of the Indian trading session.

* One-month offshore non-deliverable forward contracts PNDF were quoting at 47.18/28, weaker than the onshore spot rate.

* In the currency futures market INRFUTURES, the most traded near-month contracts on the National Stock Exchange and MCX-SX were both quoting at 47.2350 each, with the total traded volume on the two exchanges at about $1.8 billion.

(Reporting by Swati Bhat; Editing by Ramya Venugopal)