Cadila surges on Bank of America-Merrill upgrade

Reuters Market Eye - Shares of Cadila Healthcare Ltd gain 4.7 percent after Bank of America-Merrill Lynch upgrades the stock to "buy" from "underperform" and raises its target to 1,000 rupees from 705 rupees, saying the worst is behind and earnings will accelerate from fiscal 2015.

The investment bank says it expects Cadila to get 20 or more drug approvals from the U.S. Food and Drug Administration, and that it expects domestic sales to recover in fiscal 2015.

Cadila's shares fell 10.4 percent in 2013 compared to the BSE healthcare index's gain of 22.5 percent in the same period.

(Reporting by Dipika Lalwani)