Market drifts lower in early trade

Key indices cut losses after a weak opening to the day's trading session. At 9:21 IST, the barometer index, the S&P BSE Sensex, was down 54.35 points or 0.13% at 40,269.26. The Nifty 50 index was down 28.05 points or 0.24% at 11,880.10. Negative Asian stocks weighed on the domestic bourses.

The S&P BSE Mid-Cap index was up 0.08%. The S&P BSE Small-Cap index was up 0.08%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 644 shares rose and 475 shares fell. A total of 53 shares were unchanged.

On the macro front, India's industrial production data for September 2019 will be announced today, 11 November 2019. Manufacturing production data for September 2019 will also be announced today.

Among stocks, NTPC rose 0.94% after the company reported 36.37% rise in net profit to Rs 3400.84 crore on 5.66% rise in total income to Rs 26266.05 crore in Q2 September 2019 over Q2 September 2018.

Infosys slipped 0.29%. Infosys said that the company (along with certain current and former key managerial personnel) have submitted applications (Applications) with the Registrar of Companies, Karnataka, Bengaluru under Section 441 of the Companies Act, 2013 (Act) for compounding of certain alleged offences that pertain to matters relating to the severance agreement executed with the former Chief Financial Officer of the Company in October 2015 (Agreement).

Through the compounding process, the Company seeks to resolve the alleged offences under the Act relating to: (i) the Company not seeking prior and separate approvals required as per the Act from the Nomination and Remuneration Committee, Audit Committee and the Board of Directors of the Company with regard to the Agreement; and (ii) not making the requisite disclosures. The company has applied for compounding to put this legacy matter to rest, Infosys said.

Nestle India shed 0.87%. Nestle India's net profit rose 33.5% to Rs 595.41 crore on 9.5% increase in net sales to Rs 3,199.31 crore in Q3 September 2019 over Q3 September 2018.

Bank of Baroda rose 3.14% after the bank registered 73.2% increase in net profit to Rs 736.68 crore in Q2 September 2019 from Rs 425.38 crore in Q2 September 2018. Total income rose 64.5% to Rs 22,097.91 crore in Q2 September 2019 over Q2 September 2018.

Tata Power Company lost 2.69% after consolidated net profit slipped 19.5% to Rs 270.17 crore on 4.4% increase in net sales to Rs 7,677.82 crore in Q2 September 2019 over Q2 September 2018. Net profit declined mainly due to favourable tariff order in Mumbai licensed area in the previous year.

Lupin rose 0.86%. Lupin announced that it has received approval for its Zileuton Extended-Release Tablets, 600 mg, from the United States Food and Drug Administration (U.S. FDA), to market a generic equivalent of Zyflo CR Extended-Release Tablets, 600 mg, of Chiesi USA, Inc.

Ashok Leyland lost 5.29% after the company reported a 92.61% slump in net profit to Rs 39 crore for the second quarter ended 30 September 2019. The commercial vehicles maker had reported a net profit of Rs 528 crore in Q2 September 2018. Revenue stood at Rs 3,929 crore for the second quarter, down 48.45% compared with Rs 7,621 crore in the year-ago period.

Dr. Lal PathLabs gained 3.62% after the company recorded 41.48% jump in consolidated profit after tax to Rs 80.50 crore on 15.15% increase in revenues to Rs 365.60 crore in Q2 September 2019 over Q2 September 2018.

Overseas, Asian stocks were trading lower on Monday led by slide in Hong Kong shares after two protesters were shot by police during the morning commute.

In US, the three major stock indexes posted record closing highs on Friday as investors brushed aside worries over the progress of U.S.-China trade talks and as Walt Disney shares rose.

Meantime, Saudi Aramco will allow investors to start bidding for shares starting on November 17. The firm said it'll provide the number and percentage of shares sold at a later stage, with book-building kicking off this week.

In Europe, U.K.'s sovereign credit rating was placed on negative outlook by Moody's Investors Service, which said the country's ability to set policy has weakened in the Brexit era along with its commitment to fiscal discipline.

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