Dr Reddy's Labs gains; Morgan Stanley upgrades to 'overweight'

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)