Stay defensive in Indian stocks: UBS

UBS advises investors to stay defensive in Indian stocks, arguing valuations for the Nifty at 12.9 times 1-year forward P/E "are not cheap."

Looking at its model portfolio, the investment bank remains "overweight" on consumers, pharmas and defensive power stocks; "neutral" on IT; and "underweight" on autos, banks, cements, materials, and oil & gas.

UBS says it has also turned "underweight" on infrastructure stocks by cutting the weighting of BHEL and Larsen & Toubro .

The investment bank adds Nestle in place of Dabur India in its model portfolio, while adding Phoenix Mills and removing ICICI Bank .