* Morgan Stanley upgrades Tata Motors to 'overweight'
from 'equalweight', citing more stability in the China market,
the prospect for improved profitability in India, and a "strong"
pipeline for unit Jaguar Land Rover, among other factors.
* The upgrade comes as the investment bank raises its view on
India's medium and heavy commercial vehicles (MHCV) sector to
'attractive', saying the segment cycle should hit a trough in
the next six months.
* Morgan Stanley predicts MHCV volumes will recover over fiscal
2014 and 2015 as part of a recovery in industrial activity.
* Morgan Stanley also upgrades Ashok Leyland to
'overweight' from 'underweight' calling the bus and truck maker
"a good proxy to play the eventual industrial recovery."
* Tata Motors is down 1.2 percent, while Ashok Leyland is up 1.5