Automobile volumes jumped 29% year-to-date leading to strong demand for tires. A Reserve Bank survey found households expect inflation to rise to 12% by June 2011, higher than the government's projection of 5.5% by March 2011. The finance ministry rejected a Reserve Bank proposal to allow companies to acquire regional rural banks. A CII survey found the Indian industry expects the economy to grow over 8% in 2010-2011 due to rising investment and capacity utilization. Yahoo stock rose after reports that AOL and private equity firms may bid for the company. India's foreign exchange reserves increased by $1.63 billion to $295.79 billion due to growth in foreign currency assets.

1. WEEKLY NEWS
(Oct. 11, 2010 to Oct. 17, 2010)

2. Bull's Eye: Apollo Tyres, HDIL, Indiabulls Real
Estate, Mahindra & Mahindra
 Automobile volumes in the domestic market
jumped 29% YTD after a 26% jump in FY10. The
momentum is expected to continue, leading to
strong demand for tyres from the OEM
segment.
 Automobile volumes in the domestic market
jumped 29% YTD after a 26% jump in FY10. The
momentum is expected to continue, leading to
strong demand for tyres from the OEM
segment.

3. Households expect inflation at 11.9% by June:
RBI Survey
 Although the Government expects inflation to
moderate to about 5.5 per cent by March 2010,
a survey by the Reserve Bank has found that
households expect it to rise to almost 12 per
cent by next June.

4. FINMIN Rejects RBI Proposal on Companies
acquiring Regional Rural Banks
 The finance ministry is not in favour of
corporates acquiring dedicated rural lenders,
regional rural banks, a suggestion mooted by
the Reserve Bank of India in a recent discussion
paper on new bank licences.

5. Economy Likely To Expand By Over 8%: CII
Survey
 Indian industry expects the economy to grow by
over 8% during 2010-11, mainly due to rise in
capital investment and capacity utilisation, a CII
survey released.
 The government has projected the economy to
grow between 8.5 and 8.75% this fiscal. The
GDP recorded 8.8% growth in the first quarter
of this fiscal.

6. Yahoo Shares Take Off On Buyout Rumours
 Investors are running up the price of Yahoo Inc.
shares after a report saying AOL Inc. and a
group of private equity firms may bid for the
Web company. The stock climbed 74 cents, or
4.9%, to $15.99 in late morning trading after
trading as high as $16.76 earlier in the session.
 The Wall Street Journal reported on its website
that two or three other firms could also be
interested in the deal but that Yahoo hasn't
been involved in the talks yet.

7. India’s FOREX Reserves swell $1.63 bn to
$295.79 bn
 The country's foreign exchange reserves went
up by USD 1.63-billion to USD 295.79-billion on
the back of a healthy jump in foreign currency
assets, making it the fourth consecutive weekly
rise in the kitty.