UBS has advised investors to stay defensive in Indian stocks, and argued that the valuations for the Nifty at 12.9 times 1-year forward "are not cheap."
After having looked at its model portfolio, the investment bank has remained "overweight" on consumers, pharmaceuticals and defensive power stocks; UBS is neutral on IT stocks and "underweight" on autos, banks, cements, materials, and oil & gas.
UBS has said that it has turned "underweight" on infrastructure stocks by cutting the weighting of BHEL and Larsen & Toubro.
The investment bank added Nestle in place of Dabur India in its model portfolio, it also added Phoenix Mills and removed ICICI Bank .
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