Reuters Market Eye - HSBC initiates coverage of Indian agricultural sector with "overweight" ratings for seed supplier Kaveri Seed Company and agrochemical firm PI Industries Ltd citing their "growth profiles, favourable sector trends and attractive valuations."
HSBC says projections for India's food demand could see agricultural yields improving by 1.7 percent annually, making companies in this segment "stronger gainers in coming years."
The investment bank also initiates UPL limited with an "overweight" rating, calling the company "India's only genuine play on global crop protection."
But HSBC initiates Rallis India Ltd with a "netural" rating, saying a recent rally has made valuations rich.
(Reporting by Dipika Lalwani)