MARKET EYE-BoA-Merrill raises India's Bharti, Idea to 'buy'
* Bank of America-Merrill Lynch upgraded Bharti Airtel and Idea Cellular to 'buy' from 'neutral' citing the positive outcome of the 2G auction this week. * BoA-Merrill said the "deep" under-performance in both stocks over the past 12 months, potential for more favourable policy decisions in areas such as spectrum pricing, and prospect of "strong" fiscal 2014-15 earnings growth would drive Bharti and Idea. * An auction of 2G airwaves attracted less demand than targeted by the government, leading to lower prices that are giving a respite to the debt-ridden industry. * Bharti gains 3.5 percent, heading towards its fourth day of gains. Idea is up 1.5 percent, gaining for a second day. (email@example.com)
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Surprise Rate Cut
The Reserve Bank of India (RBI) lowered its policy repo rate by 25 basis points to 7.5 percent on Wednesday, its second inter-meeting cut this year on the back of easing inflation and what it said was the "weak state" of parts of the economy. Full Article