Smart rally continues for markets

Markets ended the day in green despite turning choppy in the second half of the day on account of derivatives expiry. The Sensex touched a high of 19,575 after a firm session of trade this morning. However, on rising inflation and an increase in crude oil prices, the benchmark pared gains and dropped to a low of 19,284. The index managed to regain strength and ended up 155 points at 19,445. The Nifty ended up 46 points at 5,833.

World stocks climbed to a new three-week high on Thursday and the euro inched higher ahead of the publication of Irish bank stress tests aimed at capping one of the major risks in Europe's debt crisis. Japan's Nikkei gained 0.5% at 9,755 as fund managers moved away from domestic-demand shares. Hang Seng gained 76 points to 23,528 supported by financials and property stocks. Shanghai Composite slipped 0.9% to 2,929 on worries of monetary tightening.

Meanwhile, the broader markets underperformed the benchmark and ended with marginal gains. BSE IT index led gains on the sectoral chart - up 2% at 6,548. FMCG index bouyed on the back of gains of heavyweights ITC and HUL. BSE Oil & gas and power indices were also in green. However, BSE bankex shed 0.7% at 13,300. Healthcare and auto remained remained flat.

Foreign institutional investors continued to buy in India. The FIIs had bought shares worth Rs 4,552.20 crore till Wednesday.

Worries about the continuing crisis in Libya remained as brent crude was trading at $116 per barrel. And India's food price index rose 9.5% and the fuel price index climbed 13.13% in the year to March 19, government data showed today.

IT stocks gained on hopes of strong revenues. Corporates will be reporting their sales and profits for the financial year starting next month. TCS jumped 2.7% to Rs 1,183. Infosys and Wipro jumoped 1-2% each, followed by Financial Technologies, HCL Tech and Pracle Financial Services.

Auto stocks were up marginally ahead of their monthly sales data. Bajaj Auto surged 3% to RS 1,459. Hero Honda gained 2.2% at Rs 1,586. Tata Motors ended flat at Rs 1,247. Among other gainers from the pack were Amtek Auto, Exide Industries, Cummins India and Bharat Forge.

ONGC, which has been in an uptrend after bagging 10 blocks in the ninth round of oil and gas block auctions on Monday, gained 2.7% at Rs 290. Among other gainers were FMCG heavyweight - Hindustan Unilever and ITC. Larsen & Toubro and BHELwere up as well. Reliance Industries was up 1.5% at Rs 1,048. Metal stocks surged. Hindalco surged 1.6% to Rs 209.Jindal Steel gained 1.4% at Rs 699. Sterlite and Tata Steel were up nearly 1% each.

However, banking stocks were subdued. HDFC Bank added 0.2% at Rs 2,343. SBI shed 3% at Rs 2,767. ICICI Bank dropped was up 0.5%.  "Given the global experience, we believe that banking licenses, in most probability, would guide towards granting licenses to non corporate. Hence, a strong competition would come in," said Dinesh Thakkar, CMD, Angel Broking.

Cipla, Reliance Communications, Mahindra & Mahindra and Maruti Suzuki were in red.

The BSE market breadth was marginally positive. Out of 2,951 stocks traded, 1,446 advanced while 1,409 declined.