Shares of Persistent Systems rose as much as 0.96 per cent on Wednesday in morning trade.
At 10.07 am, the stock was trading at Rs 610.25, up Rs 0.65 or 0.11 per cent.
The stock opened at Rs 617.45 and hit a high of Rs 618.25 and a low of Rs 608.95.
On Tuesday, the stock had closed at Rs 609.60.
HSBC has upgraded the stock to “buy” from “reduce”.
It has also raised the price target to Rs 740 from Rs 650.
Valuations are "decent" and outlook is improving, HSBC has said. Falling rupee, growth acceleration in intellectual property and enterprise revenues are among reasons for improving margins, it added.
The stock is still down around 5 per cent this year after losing 23 per cent in 2015.