Shares in Kaveri Seed rose as high as 7.38 per cent after HSBC initiated coverage of Indian agricultural sector with 'overweight' ratings for the seed supplier and agrochemical firm PI Industries Ltd citing their "growth profiles, favourable sector trends and attractive valuations".
Projections for India's food demand could see agricultural yields improving by 1.7 per cent annually, making companies in this segment "stronger gainers in coming years".
The investment bank also initiated coverage of UPL Limited with an 'overweight' rating, calling the company "India's only genuine play on global crop protection".
HSBC, however, initiated Rallis India Ltd with a 'neutral' rating, saying a recent rally has made valuations rich.
As of 2:20 p.m., shares in Kaveri Seed were trading at Rs 808.75 apiece on the NSE, up 6.30 per cent from the previous close.
Copyright @ Thomson Reuters 2013