Markets rebound from three-week low on value buying

Mumbai: The BSE Sensex rose more than 1 percent on Thursday, rebounding from a near three-week low hit in the previous session, led by gains in companies focused on the domestic economy such as ITC and ICICI Bank on value buying.  Sentiment also got a boost after upbeat U.S. employment data and a halt to a slide in oil eased investor concerns about the global economy. Gains were broad-based with the BSE Mid Cap index up 1.7 percent and the BSE Small Cap index higher 1.9 percent. The quarterly earnings season kick-starting with Infosys’ results on Friday will set the tone till the central bank’s rate decision and the budget in February. “Sellers are absent in the market. Value buying coupled with halt in crude oil slide is aiding sentiment,” said Deven Choksey, managing director at KR Choksey Securities, adding December-quarter earnings would be muted to steady. The BSE Sensex gained 1.2 percent and the Nifty rose 1.3 percent, rebounding from their lowest since Dec 17 hit on Wednesday and after three sessions of losses. Deutsche Bank set its year-end target for the BSE index at 33,000, citing rising government investment as a key catalyst in 2015. It had earlier set a target of 29,000 for March 2015. Domestic economy-focused stocks led gains. ITC and ICICI Bank rose 1.9 percent each. HDFC Bank gained 2 percent, while Hindustan Unilever rose 2.6 percent. Reuters