* Rupee ends at 53.285/295 per dollar vs 53.19/20 on Friday
* Dealers estimate $300 mln-$500 mln inflows from NTPC share
* Inflows to the tune of $250 mln cited from power finance
By Subhadip Sircar
MUMBAI, Feb 4 The Indian rupee fell on Monday,
retreating from a three-and-a-half-month high touched earlier in
the session, hit by a fall in domestic shares although inflows
from an upcoming government stake sale could support the local
currency this week.
The government is looking to raise about $2 billion through
a stake sale, likely on Thursday, in state-run power producer
NTPC Ltd, with dealers expecting foreign fund inflows
between $300 million and $500 million for the transaction.
Upcoming government share sales in February and March will
include state trading company MMTC Ltd and steel maker
Steel Authority of India Ltd. The government has
already raised $585 million by selling shares in Oil India Ltd
The disinvestment programme will be critical if the
government is to meet its fiscal deficit target of 5.3 percent
of gross domestic product for the year ending in March and
reduce concerns about India's current account deficit.
"The rupee move to below 53 today is indicating that the
panic related to the current account deficit is subsiding. This
typically puts the buyers at ease and adds pressure on sellers,"
said Satyajit Kanjilal, chief executive at Forexserve.
The partially convertible rupee closed at
53.285/295 per dollar versus its previous close of 53.19/20.
The rupee rose as high as 52.91 earlier in the session, its
highest level since Oct. 18, for which dealers cited about $250
million of inflows from a state-run power finance firm as aiding
However, falling domestic shares sent the rupee lower, with
the benchmark BSE index ending down 0.15 percent.
The euro also retreated from its 14-month high
against the dollar, hit on Friday, as speculators took profits,
with investors also cautious before a European Central Bank
meeting on Thursday.
In the offshore non-deliverable forwards, the
one-month contract was at 53.55 while the three-month was at
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 53.47 with a total traded volume of $5.21 billion.
(Editing by Anupama Dwivedi)