MUMBAI (Reuters) - The rupee swayed in line with seesawing shares on Monday afternoon with likely dollar inflows from the NHPC's initial public offering helping the local unit. * At 1 p.m., the partially convertible rupee was at 47.78/79 per dollar, off an early high of 47.64 but still stronger than its previous close of 47.85/86. On Friday, the rupee had dropped to 48 during trade, its weakest since July 31. * Dealers said most custodian banks were seen selling dollars which they suspected were the inflows towards the NHPC's initial public offer which is currently underway. * State utility NHPC Ltd's up to $1.25 billion IPO was subscribed more than 3 times by late afternoon on Friday in a response that may push the government to offload stakes in other firms. * Indian shares gained as much as 1.7 percent early before dropping more than 1 percent on worries that weak monsoon rains will hurt a nascent revival in the domestic economy weighed on investor confidence. Shares were trading up 0.4 percent at 0730 GMT. * In the currency futures market, the most traded near-month contract on the National Stock Exchange and MCX-SX was quoting at 47.8425 and 47.8400 respectively, with the total traded volume on the two exchanges at about $815 million. (For more news on Reuters Money click in.reuters.com/money)

Source