Morgan Stanley raised its ratings on India's Oil and Natural Gas Corp Ltd and Hindustan Petroleum Corp Ltd (HPCL) to "overweight" from "equalweight", citing benefits from the recent government reforms on fuel prices.
The government last month allowed companies to raise diesel prices, reducing the sector's subsidy burden.
ONGC shares rose 0.5 percent as of 0402 GMT, while HPCL shares were up 0.9 percent.
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