MUMBAI, Sept 22 (Reuters) - India copper futures extended gains for a second day on Tuesday, on short-covering triggered by a weak dollar overseas, while rising inventory in the LME capped the upside, analysts said. The most-traded November copper contract MCCX9 was 1.78 percent higher at 306.10 rupees per kg at 6:07 p.m., after gaining 1.4 percent in the previous session. The dollar eased before a two-day Federal Reserve meeting on U.S. interest rates, making commodities less expensive for holders of other currencies. [USD/] "It's mostly short-covering due to a weak dollar, which is helping prices," said Gnanasekar Thiagarajan, director, Commtrendz Research in Mumbai. However, rising inventories kept the upside limited in the red metal, they added. Copper stocks fell 50 tonnes to 331,775 tonnes, to remain near levels not seen since late May. Stocks have now gained about 30 percent since the middle of July. [LME/STX] "Copper is still holding to most of its gains and may test 308 (rupees) later today," said Thiagarajan. Domestic copper has more than doubled since the start of the year on stockpiling by China, the largest consumer, along with buying spurred by hopes of an economic revival. Copper may trade in the range of 300-310 rupees on Tuesday, said Tejas Seth, senior research analyst SMC Global. In other base metals, the September zinc MZIU9 was 1.75 percent higher at 92.95 rupees per kg, while lead for September delivery MLDU9 was 2.47 percent higher at 107.85 rupees per kg. (Reporting by Siddesh Mayenkar; Editing by Sunil Nair)

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