Nifty breaches 8450, GST push fails to calm nerves; metals bleed

Moneycontrol Bureau11:55 am IT in soup? In a setback for the Information Technology companies (IT), Nasscom is likely to revise the sector's revenue growth guidance downwards, reports CNBC-TV18, quoting sources.It is learnt that the revision will be in the range of 8-10 percent as compared to 10-12 percent projected in the beginning of this financial year.The revision in growth guidance is due to uncertain global environment and softening of Banking, Financial services and Insurance (BFSI) sector.11:45 am Outlook on banks: Banks are actively addressing the problem of non-performing loans and even corporates have realised the issue and are actively addressing the problem, according to Ambit. The worst in banking sector is over and collaboration between banks and the corporates will ensure that the issue of stressed assets is addressed, said Ashok Wadhwa, Group CEO, Ambit. He said that the brokerage has a positive bias on the consumer durables space in terms of growth. Two-wheelers showing a positive bias over a three-month period indicates the start of a positive consumption cycle and the broking house thinks that process may have begun, he added.11:30 am Buzzing: Shares of ITC rose over 6 percent intraday as fears of goods and service tax (GST) overhang has subsided after GST council has finalised four-tier tax structure. Earlier, there were uncertainties about charging higher tax on tobacco post GST. ITC gets over 45 percent of its revenue from tobacco products.

The sin or demerits products (tobacco, aerated drinks, pan masala and luxury cars will be taxed at 28 percent with additional cess, quantum of which has not been stated/finalised. However, the government has indicated that overall tax incidence on these categories will remain broadly unchanged.

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The Sensex is down 81.65 points or 0.3 percent at 27348.63 and the Nifty is down 36.20 points or 0.4 percent at 8448.75. About 509 shares have advanced, 1919 shares declined, and 83 shares are unchanged.  Metals and pharma stocks are bleeding.

ITC, HUL, ONGC, NTPC and Axis Bank are top gainers while Sun Pharma, Dr Reddy's Labs, Lupin, Coal India and SBI are losers in the Sensex.

Oil prices edged up in early trading, stabilising after five straight days of falls triggered by a surge in US crude inventories and doubts over the ability of oil producers to coordinate an output cuts.

Despite the slight increases, traders said market sentiment was bearish. Brent futures fell for the past five straight trading sessions and is down about 13.5 percent since its most recent peak in mid-October.