ABB, Siemens gain: Morgan Stanley turns overweight on industrials

ABB India up 3.4 percent, Siemens gains 2.8 percent.

Morgan Stanley turns overweight on industrials in its model portfolio.

"We are adding 300 bps to industrials (from nil earlier) by cutting energy to neutral," the investment bank says.

Adds industrials to re-rate as interest rates fall in response to government action, fiscal consolidation and declining CPI which are likely precursors to a new capex cycle in 2016.

Says private capex is likely to recover slowly given stretched balance sheets and low profitability.

Says if there is a positive surprise on capex, it is likely to come from state-owned enterprises and the government.