UBS remains bullish on Indian shares, but says returns in 2013 would be front-loaded

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as first half would be supported by an easing rate cycle and on expectations of a "market-friendly" budget for FY14.

The investment bank turns 'neutral' on IT services stocks from 'overweight' earlier, as it increases weight on Infosys and adds Wipro to its model portfolio.

"Recent Infosys and TCS results may point towards some signs of a relief in offshore spending and an incrementally improved environment for Indian IT," UBS said in the report.

The bank turns 'neutral' on metals stocks from 'underweight' as it adds JSW Steel and Tata Steel to its model portfolio, citing positive trends in steel prices and a pickup in construction activity.

UBS also increases weightage on Reliance Industries ahead of its December quarter earnings on Friday, thereby turning 'overweight' on the petrochemical sector from 'neutral' earlier.