Shares in Tata Consultancy Services(TCS.NS) gain 1.9 percent after Morgan Stanley upgraded the stock to 'overweight' from 'equal-weight' and raised its target price on the stock to 1,415 rupees from 1,225 rupees.

Morgan Stanley says IT spending could be stable in 2013 and that it does not expect deal flow and volumes to be disrupted despite uncertainty in Europe.

The investment bank says fiscal 2014 revenue can recover, noting "revenue growth trends in the industry are not in a secular decline."

The investment bank also says a recent correction in TCS's share price creates an opportunity for medium- to long-term investors.

TCS stock is down 7.9 percent in December as of Tuesday's close compared with a 0.6 percent return in the BSE Sensex in the same period.