Shares of India's Dr Reddy's Laboratories gain 0.9 percent.
Morgan Stanley upgrades the stock to "overweight" from "equal-weight"; raises price target to 3,875 rupees from 3,049 rupees.
Says drugmaker's U.S. pipeline outlook has strengthened and valuations appears to be reasonable.
"We expect a better outlook for FY16 and FY17 as underlined by improving India, and US businesses," it said.
(Reporting by Indulal PM)