MUMBAI, Nov 11 (Reuters) - The Indian rupee fell on Tuesday as a slide in shares raised concerns of more foreign outflows, although the drop was tempered by an issue of oil bonds to refiners that removes some dollar demand from the market. At 11:35 a.m. (0605 GMT), the partially convertible rupee was at 47.59/60 per dollar, half a percent weaker than 47.35/37 at close on Monday. "Exports are slowing down and even the stock market is negative, but the issue of oil bonds to refiners is a positive news as that will pull out oil demand from the market," a senior dealer with a private bank said. Local media reported India's exports fell by 15 percent in dollar terms in October from a year earlier, their first fall in five years, which dealers said has hurt sentiment on the rupee. The government issued 220 billion rupees of special oil bonds to three state-run oil firms, to partly compensate them for selling fuel at below market prices. See [ID:nMBI002103]. The oil firms can use the bonds to borrow foreign exchange directly from the central bank, removing a major source of dollar demand from the market. Indian shares .BSESN fell nearly 5 percent on Tuesday morning, after rising more than 8 percent over two days, as worries about the global economic outlook undermined the optimism sparked by China's massive economic stimulus package. See [.BO]. Foreign funds have so far in 2008 sold 12.7 billion worth of Indian shares, after buying a record $17.4 billion last year. One-month offshore non-deliverable forward contracts PNDF were quoting at 47.95/48.10, weaker than the onshore spot rate, indicating a bearish near-term outlook. (Reporting by Swati Bhat; Editing by John Mair)

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