Sensex ends flat; ONGC up 3% ahead of auction, L&T falls 3%

The market closed on a flat note looking cautious ahead of the second tranche of long term refinancing operation (LTRO) by European Central Bank to be announced after 15:45 hours IST. The market was quite strong since morning, but disappointing FY12 Q3 GDP data and cautious mood ahead of LTRO spoiled the bulls' party in last couple of hours of trade.

The Sensex touched an intraday high of 18,001.35 and low of 17,677.97, before closing up just 9.13 points at 17,740.25. The Nifty rose 9.7 points, to close at 5,385.20 after hitting a high of 5,458.80 and low of 5,352.25 during the day.

Analysts expect second LTRO package of about euro 500 billion. To a large extent, Amit Dalal, Executive Director, Tata Investment Corporation feels the news itself is discounted with the global markets having rallied already if it comes in line.

For India, however, the incremental flows will definitely keep the market going. "There is steam left in this rally both in terms of time and value essentially because liquidity conditions are becoming more and friendlier towards perhaps a technical upsurge in asset prices worldwide," he added.

India's economy grew at its slowest pace in more than two years during last quarter of 2011 as high interest rates and booming input costs hampered manufacturing activity. Gross domestic product grew at an annual 6.1% in Q3 versus CNBC-TV18's poll of 6.25%.

Economist Radhika Rao says "Q4 (2011) GDP came in slightly weaker than consensus, though not entirely surprising. Initial growth estimates for this FY had signaled that the agricultural output remained weak, though moderation in the manufacturing sector was likely the starkest as higher input prices and sharp jump in borrowing costs depressed output."