Markets continue winning streak

Markets gained for the seventh straight day on the back of strong cues from European indices and a revival in foreign equity inflows. The Sensex touched 19,357 -its highest in over two months and dropped around 180 points from the high to touch an intra-day low of 19178 before ending with gains of 169 points at 19,290. Nifty was up 51 points at 5,787.

Foreign institutional investors turned buyers on March 22. They have bought shares worth Rs 3,051 crore in the last five days (till March 28). "Foreign Institutional Investors (FIIs) have started buying since the past three or four days, which is giving some support to the markets. Call writers were forced to cover their shorts in the option segment that has led to the sharp rally," said Alex Mathews, Research Head, Geojit BNP Paribas Financial Services.

Asian markets ended in the green, with Japan's Nikkei soaring 2.6% to 9,708 and Hang Seng gaining 1.7% to 23,451. European bourses mirrored the gains; FTSE moved up 0.6% at 5,967. DAX jumped 1% while CAC added 0.7% to 4,015.

BSE mid and small-cap indices were outperforming today. The mid-cap index gained 1.5% at 6,853. Meanwhile, the small-cap index jumped 2.2% to 8,159.

Oil prices declined with rising crude supplies in the US, increasing fears that demand may falter in the economy. Prices had climbed over 23% since unreast began in Libya on February 15,2011. Brent crude was trading at $114 per barrel.

Investors would be taking cautious positions ahead of the derivatives expiry tomorrow as they rollover positions at the end of the financial year. "We are expecting some profit-booking above 5800 levels; however, our expectation is that expiry should be around 5750-5780 given that crude price is cooling off -- acting as a positive trigger for the market," said Shshank Mehta, Derivatives Strategist, Nirmal Bang.