Sensex ends up 206pts

Sensex ends (provisional) up 206 points at 19,327. Nifty ends up 62 points at 5,798.
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(Updated at 1419 hrs)

Markets have pared gains in late noon trades. The BSE benchmark rose to its highest in two and a half month in late noon trades today on the back of strong cues from European indices. A revival in foreign equity inflows helped buoy markets for the seventh straight day.

The Sensex touched a high of 19,357 in mid-noon trades. The index, thereafter, pared some gains and was up 144 points (0.7%) at 19,265. Nifty was up 38 points at 5,774.

Foreign institutional investors turned buyers on March 22. They have bought shares worth Rs 3,051 crores 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 were in the green with Japan's Nikkei soaring 2.6% to 9,708. Hang Seng gained 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, logging comparatively lesser gains on Tuesday. The mid-cap index gained 1.3% to 6,840. Small-cap index jumped over 2% to 8,153.

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 $115 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 porfit 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,"Shshank Mehta, Derivatives Strategist, Nirmal Bang.

Most of the sectoral indices, barring FMCG index, was in the green. BSE consumer durables index surged 4% to 6,263. BSE realty, bankex and auto shone with gains of 1-2% each.

Auto stocks gained ahead of the release of monthly sales data. Mahindra & Mahindra surged 3.3% at Rs 709. Bharat Forge added 1.7% to Rs 344. Hero Honda, Maruti Suzuki and Ashok Leyland added 0.8% each.

Cement stocks surged in trades. ACC gained 2.5% at Rs 1,067. Ambuja Cements soared 6.3% to Rs 147. Meanwhile, Grasim and Binani Cements traded flat.

Paper stocks remained in the limelight after US-based, International Paper Company bought AP Paper Mills. Among idnividual stocks, NR Agarwal and Yash Papers were locked at their 20% upper circuits. A P Paper, Malu Paper, Sh Ajit Pulp, ABC Paper, JK Paper and Ballarpur Industries soared 18-20% each.