UBS removes Sun Pharma, Hero MotoCorp from model portfolio

UBS adds Sun TV and Dr. Reddy's to its Indian model portfolio, but removes Sun Pharma and Hero MotoCorp , the investment bank says in a note on Monday.

The bank says the fiscal 2013 outlook for Dr. Reddy's is "strong", driven by the continued expansion of its U.S. business, whereas Sun Pharma has outperformed the NSE index and has "limited upside" given current valuations.

UBS adds Sun TV after Arasu Cables recently agreed to carry the television broadcaster's channels.

UBS says removes Hero from its portfolio, citing "muted" growth outlook for the company in the near-term because of expectations for reduced rural demand on the back of a poor monsoon season.