PSU OMCs, auto stocks in focus after petrol price cut

Shares of public sector oil marketing company (PSU OMCs) and auto companies will be in focus as India's largest fuel retailing company - Indian Oil Corporation (IOC) on Thursday, 15 November 2012, announced a Rs 0.95 per litre cut in the petrol price. The government decontrolled pricing of petrol in 2010. Petrol in Delhi now costs Rs 67.24 a litre, down 95 paise from Rs 68.19 a litre. Prices vary from city to city due to differential local sales tax or VAT rates. Biocon announced that it has entered into an option agreement with Bristol-Myers Squibb Company for Biocon's IN-105, a prandial oral insulin product candidate. Under the terms of the agreement, Bristol-Myers Squibb will have the right to exercise an option to obtain an exclusive worldwide license to the program. Biocon will conduct clinical studies to further characterize IN-105's clinical profile accordingto a pre-agreed development program up to the completion of Phase 11. If Bristol-Myers Squibb exercises its option to license IN-105 following the successful completion of the Phase 11 trial, Bristol-Myers Squibb will assume full responsibility for the development program, including all development and commercialization activities outside India. Biocon will receive a license fee in addition to potential regulatory and commercial milestone payments and royalties on commercial sales of IN-105 outside India. Biocon will retain exclusive rights to IN-105 in India. Ms. Kiran Mazumdar-Shaw, MD and Chairman of Biocon, said: "This agreement is one huge step closerto realizingthe dream of bringing oral insulin to market. We are excited to extend the excellent relationship we already enjoy with Bristol-Myers Squibb, and look forward to working closely with them to make this a reality." Diabetes is a chronic disease that affects about 350 million people worldwide. Long-term complications of diabetes include cardiovascular complications, peripheral vascular disease (leading to and including amputation), kidney failure, and other chronic diseases. It is estimated that the direct and indirect costs of diabetes to the overall healthcare system amount to over $650 billion worldwide, Biocon said in statement. TCS announced that it is collaborating with SAP AG on development of the SAP Retail Execution mobile app version 3.0. The collaboration is based primarily on TCS' extensive experience in consumer packaged goods (CPG) industry implementation projects and mobile application product development, TCS said. In version 3.0 of the powerful SAP Retail Execution 3.0 mobile app, it is extended to further improve productivity of CPG sales representatives during store visits and to provide merchandisers and promotions planners with critical insights on product placement and distribution and promotional impact. This new version—built on the SAP Mobile Platform—integrates with mapping, phone, camera and e-mail features on a mobile device, enabling sales teams to drive business processes and initiate business events from any location, TCS added in a statement. L&T Finance Holdings after trading hours on Thursday, 15 November 2012, said that it has noted that there has been a significant spurt in both traded and delivered volumes in the company's shares on the bourses, associated with appreciable increase in the share price. L&T Finance Holdings said this could due to certain reports/rumours regarding merger and acquisition activities. L&T Finance Holdings said it will not be prudent on the part of the company to respond in any manner to rumour or speculation. L&T Finance Holdings further said that the management intends to clarify that as a part of the growth strategy, the company pursues both organic and inorganic opportunities on an ongoing basis and appropriate public announcement of any new development with regard to the company is made in accordance with the applicable law. Sintex Industries said it plans to raise up to $150 million through issue of convertible bonds from overseas markets. “The company's board at its meeting held earlier today launched an issue of up to $150 million step down foreign currency convertible bonds (FCCBs) due 2017,” Sintex said in a filing. The net proceeds from the offering of the bonds will be used to repurchase or repay the outstanding principal, accrued and unpaid interest on the FCCBs issued in 2008, it added. The company said it has fixed the floor price of the bonds at Rs 65.74 per share.