Morgan Stanley raises weightage of energy stocks in its India model portfolio to 3%, while cutting 1% each from consumer staples and discretionary stocks.
"Energy appears to be on a path of structural change whereas consumer staples face cyclical headwinds from fiscal consolidation," says Morgan Stanley in a report.
The bank also adds Bank of Baroda, Crompton Greaves and Oil and Natural Gas Corp to its focus list, while removing ACC Ltd, Jubiliant Foodworks and Cox & Kings, reflecting changes in its analyst opinion.
In its mid-cap list, Morgan Stanley replaces Marico Ltd with Dabur India.