Markets nosedive 6.2%
Closing

Indian benchmark nosedived since the start of the session today and ended almost 6.2% lower despite some recovery. This was after China's Shanghai Composite Index closed 8.5% lower on Monday, while US equity-index futures signaled a fifth straight day of losses. The BSE-Sensex fell 1,624 points, while the NSE-Nifty slumped 491 points to 7,809. Midcaps and Small caps weren't sparred either. The S&P BSE Midcap plunged 7.8% while S&P BSE Smallcap fell 9%. All the sectoral indices were trading significantly in the red. Realty index plunged the most by 11.5%, followed by oil & gas 9.71%, infrastructure 8.77% and PSU 8.16%.

The 1,600-point fall in the Sensex today may just be the signs of things to come. And who knows, markets may well go down a good deal more? If it does, be prepared to see a lot more buy recommendations from us.

But even if that does not happen, you need to identify stocks from your portfolio that are nothing but ticking time bombs, right away. Stocks where fundamentals are deteriorating and are virtually defenseless against a market wide correction like we saw today. If you persist with these stocks for long enough, they can virtually make your entire portfolio come crashing down.

What if we tell you that we've identified a method that helps you weed out such troublemakers from your portfolio well before they start poisoning it? You may certainly want to know about it, isn't it? Well, you won't have to wait for long as we are making this report available to you right away. All you have to do is click here in order to grab a copy of the same.

Asian markets finished sharply lower today with shares in China leading the region. The Shanghai Composite is down 8.49% while Hong Kong's Hang Seng is off 5.17% and Japan's Nikkei 225 is lower by 4.61%. European markets are sharply lower today with shares in France off the most. The CAC 40 is down 2.43% while London's FTSE 100 is off 2.42% and Germany's DAX is lower by 2.25%. The rupee was trading at 66.51 against the US$ at the time of writing.

Power stocks languished in red with Torrent power Ltd and PTC India Ltd bearing majority of the brunt. According to a leading financial daily, National Thermal Power Corporation (NTPC) is planning to acquire the 5 decade old Sarni Thermal Power Station of Madhya Pradesh. The company already has presence in the state as it runs one of the largest thermal power stations -- Vindhyachal Thermal Power. Further, the company is also planning to seal a similar deal with Jharkhand government for its 770-megawatt (Mw) Patratu thermal power station in Ramgarh district in Jharkhand. NTPC is the largest power generating company in the country.

Oil & gas sector fell more than 9% in intraday trading. Cairn India and HPCL were the leading losers today. According to a leading business daily, The government will be selling 10% of its stake in Indian Oil Corporation (IOC) on August 24, 2015, to raise about Rs 95 bn. The government, which holds 68.60% interest in IOC, will sell 242.8 million equity shares through an offer for sale (OFS), the floor price of which will be announced on August 22, 2015. The government is targeting to raise Rs 695 bn from disinvestment in the current fiscal. Stake sale in IOC will be the fourth disinvestment this fiscal and the biggest so far. The earlier 3 stake sales had raised just over Rs 30 bn. The script of IOC ended the trading day down by 4% on the BSE.

Indian markets fall lower
01:30 pm

After trading on a bearish note during the morning session Indian Indices further moved southwards and are currently trading deep in the red. Sectoral indices are trading on a negative note with stocks from the energy, steel and mining sectors leading the losses.

The BSE-Sensex is trading down by 1121 (down 4.1%) and the NSE-Nifty is trading down by 344 points (down 4.2%). The BSE Mid Cap index is trading down by 5% and the BSE Small Cap index is trading down by 6%. Gold prices, per 10 grams, are trading at Rs 27,383 levels. Silver price, per kilogram, is trading at Rs 36,000 levels. Crude oil is trading at Rs 2,639 per barrel. The rupee is trading at 66.56 to the US dollar.

Mining stocks are trading on a negative note with Vedanta Ltd and Hindustan Zinc leading losers. As per a leading financial daily, Coal India has cleared three projects with at total production of 40 million tonnes entailing an investment of about Rs 59 bn. The said mines are expected to commence production within a few years and will add to the company's target of achieving 1 billion tonnes in output by 2020. Further, the company is planning to spend a total Rs 106 bn in FY16 on enhancing its production capacity and ramping up infrastructure. Coal India is the world's largest coal mining company. It also produces non-coking coal and coking coal of various grades for diverse applications. The stock of company is currently trading down by 2.3%.

Energy stocks are also trading negatively with ONGC and Cairn India witnessing maximum selling pressure. As per an article in Economic Times, GAIL India Ltd has begun talks with Iran to revive a decade-old US$ 22 bn LNG supply contract. This is said to be the cheapest such deal ever struck by an Indian firm. Under the contract, the company is to buy 2 million tonnes per annum (mtpa) of LNG from NIGEC (National Iranian Gas Export Company). Presently the scrip of company is trading down by 7.5%.

Sensex falls 1,000 points intraday
11:30 am

After opening the day on a bearish note, the Indian Indices have significantly added to the losses and are currently trading deep in the red. All sectoral indices are trading negatively with stocks from the auto, banking and capital goods sectors leading the losers.

The BSE-Sensex is currently trading down by 984 points (3.6%) and the NSE-Nifty is trading down by 307 points (3.7%). The BSE Mid Cap index and the BSE Small Cap index are also trading in the red, down by 3.9% and 4.6% respectively. At the time of writing, the rupee stood at 66.46 to the US dollar.

Stocks in the automobile space are trading on a bearish note with Maharashtra Scooters and Eicher Motors bearing the maximum burnt. As per a leading financial daily, Eicher Motors one of the leading manufacturers of commercial vehicles, has announced its future plans for Indonesia as a part of its growth strategy. The company's motorcycle division Royal Enfield has market its entry in Indonesia at GAIKINDO Indonesia International Auto Show (GIIAS) 2015. Royal Enfield will commence retail operations in the coming months from its exclusive dealership in Jakarta that is being set up in partnership with PT Distributor Motor Indonesia, who have signed up as a dealer for the region. By this dealership, a service and aftermarket capability for Royal Enfield in Jakarta is also said to be complete. Scrip of Eicher Motors is trading down by 5.4%.

Banking stocks are trading negatively with losses led by IDBI Bank and Oriental Bank. According to financial times, country's largest lender State Bank of India (SBI) is planning to open 500 customer service points to bridge last mile gap between bank and customers in West Bengal. In addition to this, the company already has 56,000 customer service points across states as low cost intermediaries for taking banking to grassroot level. On a separate note, the company has reported 10.25% YoY rise in its net profit for the quarter ended June 2015. Stock of SBI is currently trading down by 4%.

Markets slump amid global sell off
09:30 am

The Asian stock markets have opened the day on a dismal note with markets in China, Taiwan and Hong Kong down 9.1%, 6.5% and 4.9% respectively. The European and US stock market ended their previous session on a disappointing note. The rupee is trading at 65.83 per US dollar.

Indian stock markets have also opened deep in the red amidst weak global cues. BSE-Sensex is trading down by 850 points (down 3.1%) and NSE-Nifty is trading down by 270 points (down 3.3%). The stocks in mid cap and small cap have plunged further. S&P BSE Midcap and S&P BSE Smallcap is trading down by 3.7% and 3.9% respectively. Sectoral indices have opened the day on a negative note with stocks from automobile, capital goods, metal and telecommunication sector witnessing the highest selling pressure.

Major stocks in the automobile sector have opened the day in red. As per a leading financial daily, Tata Motors has stated that many of the 8500 Jaguar and Land Rover (JLR) vehicles are likely to have been damaged due to the chemical explosion which took place at the 'Tianjin' port in China. The JLR cars had recently been shipped to China and were stored in various locations at the Tianjin port. The company further stated that they are unable to quantify the exact extent of the damage as access to facilities near the site of explosion remains restricted. China is conducting an investigation into what caused the huge explosion at the warehouse storing chemicals at the busy port in northeast China. Stock of Tata Motors is trading down by 5.2%.

Stocks in the FMCG sector have opened their day on a negative note. As per an article in Business Standard, ITC's noodle brand 'Yippee' has found itself in trouble. The Uttar Pradesh Food and Drug Authority (UPFDA) have found excess lead content in the noodles. The UPFDA stated that it will soon file a case regarding the same. It further stated that the sample of noodles tested, have found lead content to be far in excess of the permissible limits. The lead content which should have been below one ppm was found to be 1.057ppm. The samples were sent to the state laboratory at Lucknow and Meerut for testing. Stock of ITC is trading down by 1.6%

Will NBFCs surpass PSBs?
Pre-Open

It is not very long when the Non-Banking financial companies or NBFCs were players with small resource base. The significance of non-banking financial companies in India lies in the massive capabilities of their funding to entities. These NBFCs do most of the activities that bank does except that they cannot be part of payment and settlement; as such transactions related to cheques are not done by these NBFCs.

In spite of their limitations, some of the leading NBFCs have grown much bigger than many public sector banks (PSBs). As per an article on Business Standard - In the last six years, the combined net worth of top-10 non-specialised NBFCs has grown by 20.6%. This is much higher than the growth of small and mid sized PSBs which have grown by 17.1% during the same period.

One of the prime reasons for the PSBs underperformance is the increasing rate of the bad loans. These bad loans have impacted the growth of the PSBs. The PSBs are generally ascribed their vulnerability to political pressures to lend to certain segments of the economy - known as "priority sector" lending, has also been contributor to their inefficiencies too. Consequently, these banks have huge pipeline of bad loans awaiting for restructuring. These rising bad loans has been impacting their leverage too. The corporate leverage of the PSU banks currently stand at highest levels in last one decade.

This in turn has opened up market for NBFCs. And thus helping in the better growth of the NBFCs. Reportedly, India Ratings expects NBFC to account for 17.1% of the total credit in the system by FY19. This up from 13.1% in FY15 and 9.4 % in FY06.

So far, the NBFCs have been able to penetrate well and have better project approval skills. If the trend continues, NBFCs will continue to grow than their banking peers in growth terms.