--- a/mercurial/commands.py	Mon Jan 02 19:30:28 2012 -0600
+++ b/mercurial/commands.py	Tue Jan 03 17:13:03 2012 -0600
@@ -2694,7 +2694,7 @@
 
     Returns 0 if a match is found, 1 otherwise.
     """
-    reflags = 0
+    reflags = re.M
     if opts.get('ignore_case'):
         reflags |= re.I
     try: