By Anil Varma June 17 (Bloomberg) -- India’s rupee traded little changed as investors weighed a plan by the government to impose capital- gains tax on all stock trades. The benchmark Sensitive Index of local shares was unchanged after the finance ministry this week unveiled a proposal to tax investments in stocks and equity-linked mutual funds. The Dollar Index rose for a second day, signaling investors favor the perceived safety of the greenback amid Europe’s lingering debt crisis. “The rupee isn’t showing a clear trend and will keep taking cues from the stock market for direction,” said Naveen Raghuvanshi, a trader in Mumbai at Development Credit Bank Ltd. “Equities opened slightly lower and don’t reflect strong investor sentiment. We aren’t seeing any significant fund flow either.” The rupee traded at 46.5625 per dollar as of 11:08 a.m. in Mumbai, compared with 46.56 yesterday, according to data compiled by Bloomberg. It may trade between 46.50 and 46.65 today, Raghuvanshi predicted. Offshore forwards indicated the currency will trade at 47.03 to the dollar in three months, compared with expectations of 46.99 yesterday. Forwards are agreements to buy or sell assets at a set price and date. Non-deliverable contracts are settled in dollars. --Editors: Ven Ram, Sandy Hendry To contact the editor responsible for this story: Anil Varma at avarma3@bloomberg.net To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net

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