[R]6:00 PM Mumbai, 8:30 AM New York – The Wholesale inflation index showed an increase in inflation in the week ending on October 10. Price decline two months ago was revised sharply lower. Larsen & Toubro declined after it estimated sales rise of 15% in the next year. Hero Honda net surged 95%.[/R]

The wholesale price index increased 1.21% from a year ago week in the week of October 10 after rising at 0.92% in the previous week. The inflation index measure is expected to be overhauled to accurately capture the changes in the consumer and industrial markets.

Food prices have skyrocketed in the last one year with prices of potato surged 104% and sugar surged 45%.

The inflation index for the week ending on August 15 was revised lower to 0.2% from the previous estimate of a decline of 0.95%.

The Reserve Bank of India is schedule to announce its rate decision on October 27.

The Sensex index in India decreased 219.43 or 1.2% to 16,789.74 and CNX Nifty index fell 75 or 1.4% to 4,988.60. Among the Sensex 30 stocks, 23 declined and 7 rose.

On the BSE trading, 871 stocks advanced, 1,863 declined and 79 were unchanged.

Foreign banks record 7.6% drop in credit flow, private players see 3.7% growth. Private and foreign banks continued to lose market share in recent months despite their claims of resumption of lending.

The finance ministry is set to push for consolidation in the public sector banking space and has started work on a road map to create between eight to ten large banks.

Rupee edged lower 15 paisa to 46.53 against one dollar.

Gainers & Losers

Allahabad Bank fell 1.4% to Rs 126.15 after the public sector bank said second quarter net interest income rose 22% to Rs 603.4 crore from Rs 494 crore a year ago. Net profit for the quarter 700% to Rs 333.6 crore or Rs 7.47 per diluted share compared to net profit of Rs 41.7 crore or Rs 0.93 per share a year ago.

Biocon Limited rose 1.1% to Rs 274.10 after the manufacturing of biotechnology products in the pharmaceutical sector said second quarter net profit surged 196.52% to Rs 74.19 crore compared to Rs 25.02 crore a year ago.

Bhushan Steel Limited fell 3.1% to Rs 1,334.90 after the coal and mineral exploration company said second quarter sales fell 14% to Rs 1,298 crore from Rs 1,515 crore a year ago. Net profit for the quarter rose 32% to Rs 189 crore compared to net profit of Rs 143 crore a year ago.

Everonn Education Limited fell 1.3% to Rs 450.50 after the education and training provider said second quarter net profit rose 147.5% to Rs 10.62 crore.

Hero Honda Motors Limited decreased 1.0% to Rs 1,596.40 after the manufacture of motorcycles said second quarter net profit rose 95% to Rs 597.14 crore compared to Rs 306 crore a year ago.

Hindustan Copper Limited added 2.9% to Rs 262.70 on the media reports that the government is considering divesting its stake in the company.

Hindustan Zinc Limited fell 1.6% to Rs 868.05 after the primary producer of lead said second quarter sales rose 3% to Rs 1,790 crore from Rs 1,744 crore a year ago. Net profit for the quarter fell 2.6% to Rs 935 crore or Rs 22.13 per diluted share compared to net profit of Rs 960 crore or Rs 22.70 per share a year ago.

Indraprastha Medical Corporation Limited jumped 3.9% to Rs 38.15 said second quarter net profit rose 45.2% to Rs 8.63 crore compared to Rs 5.93 crore a year ago.

Jaiprakash Associates Limited declined 5.7% to Rs 240.95.

Jubilant Organosys Limited decreased 4.6% to Rs 211.30 after the pharmaceuticals and life sciences products and services provider said second quarter revenues fell 1% to Rs 933.1 crore from Rs 940.5 crore a year ago. Net profit for the quarter was Rs 57.8 crore or Rs 3.91 compared to net loss of Rs 62.7 crore or Rs 4.25 per share a year ago.