PNB, BPCL, Tata Steel, Sun Pharma, GMR Infrastructure

Merrill Lynch surprisingly keeps a BUY on PNB with a target of 700.They believe PNB is trading at 1.26x FY08E Adj book with forecast ROE of +20%. They believe PNB could trade up to 1.3x to 1.4x FY09E adj book owing to +25% earnings growth, high CASA and being ahead on technology. Rise in bond yield remains key risk to PO.

Macquarie recommends OUTPERFORM on BPCL with a target of 495 (33% upside). Macquarie believes that BPCL is a value play and reaffirm their Outperform rating

Merrill Lynch upgrades Tata Steel from Neutral to Buy with a target of Rs800. They are enthused by with the potential synergies and cost reduction from Corus acquisition. Even though the stock has risen 47% last 3 months, at P/E of 6.6xFY08E,they believe the recent performance reflects only the steel price leverage and the market is not yet appreciating the synergy benefits which should unfold over the next 18 months.

Merrill Lynch recommends BUY on Sun Pharma as they think Taro acquisition is highly Strategic. Sun Pharma's acquition is said to be EPS accretive in 12-18 months

Macquarie initiates coverage on GMR Infrastructure with a OUTPERFORM.GMR was among the first business groups in India to recognise the value proposition of owning monopoly assets in a high growth but supply constrained infrastructure sector. The NPV of its existing asset portfolio is Rs186bn, representing 18% upside from current levels with a target of 560