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Securities lose 30-35 P

Our Bureau

MUMBAI, Sept 18

SECURITIES across tenors lost 30-35 paise today in tandem with the volatile rupee closing at an all-time low of Rs 46.03/.05 to a dollar.

The 11.40-per cent 2008 paper, which opened the week at Rs 99.35, lost 10 paise through the day to close at Rs 99.25, registering a 35-paise drop against Saturday's close of Rs 99.50.

The 12.50-per cent 2004 paper opened at Rs 104.35, dipped by 10 paise in the day to close at Rs 104.25, losing around 24 paise as against Saturday's close of Rs 104.49.

Call closed at 8.25 levels in the inter-bank money market as liquidity was good and this despite the central bank absorbing Rs 9,045 crore through repos. The RBI today received 17 bids of Rs 1,305 crore in the one-day repo of which it accepted 16 bids of Rs 1,295 crore at 10 per cent.

The three-day repo received 31 bids of Rs 7,750 crore of which 29 bids amounting to Rs 7,730 crore at 10 per cent

were accepted.

``Although there has been an outflow of Rs 9,045 crore in the repos today, there are no immediate concerns of liquidity tightening'', said a dealer with a private sector bank.

``The market has fallen due to the depreciation of the rupee. The immediate concern is rising oil prices,'' according to a dealer.

According to Mr Moses Harding, Country Head, Treasury and Investments, Centurion Bank, ``the sentiment in the market is definitely bearish. The only negative factor right now is the volatility in the rupee. It is possible that the EEFC scheme may be scra pped and the exporters may be asked to bring in their balance dollars. But the medium term outlook is not so bad.''

In the words of Mr P. Mukherjee, Vice-President, Treasury, UTI Bank: ``These rupee fluctuations are part of the normal exchange rate movements due to imbalances in demand and supply. There is no need to panic.''

Treasury Bills auction: Meanwhile, the RBI has announced the auction of 14-day and 91-day Government of India Treasury Bills for a notified amount of Rs 100 crore each, for which the tenders should be submitted on September 22. The results would be annou nced the same evening.

An auction has also been announced for 364-day Bills for a notified amount of Rs 500 crore for which the tenders should be submitted on September 20. The results would be announced the same evening, an RBI press release said.