Asian shares are trading on a positive note today. The Nikkei 225 is up 1.3%, while the Hang Seng is up 2.7%. The Shanghai Composite is trading up by 2.9%.

Back home, India share markets have opened the day on a positive note. The BSE Sensex is trading up by 151 points (up 0.4%) while the NSE Nifty is trading up by 36 points (up 0.3%). The BSE Mid Cap index is trading up by 0.6%, while the BSE Small Cap index has opened the day up by 0.5%.

Sectoral indices have opened the day on a positive note with Metal stocks and realty stocks witnessing maximum buying interest.

The rupee is trading at 70.01 to the US dollar.

In the news from the pharma space, Sun Pharma share price is witnessing selling pressure today after an email to the markets regulator claims Sun Pharma promoter Dilip Shanghvi and his brother-in-law Sudhir Valia were engaged in financial irregularities with Dharmesh Doshi, a key figure from the 2001 Ketan Parekh scam.

The whistle-blower made allegations in a 150-page letter sent to the markets regulator, which had earlier banned Doshi and Parekh following the 2001 scam.

According to the news in a leading financial daily, the irregularities involved two or three major rounds of foreign currency convertible bonds (FCCBs) issued by Sun Pharma during 2002-2007, which was managed by Jermyn Capital LLC.

Sun Pharma share price is trading down by 8%.

You can read Sun pharma Q2FY19 result analysis and Sun pharma fact sheet on our website.

Speaking of pharma sector, note that the BSE Healthcare Index has been on a roller coaster ride in the past few years. The period from 2012 to 2015 saw the index go up more than three times.

We believe that pharma companies that invest in creating a pipeline of complex generics or building competencies in alternative dosage forms are better equipped to tackle the changing dynamics in the US generics market as well as in the overall industry.

In news about the economy. The government's fiscal deficit for the April-October period stood at Rs 6.48 trillion, or 103.9% of the full-year target of Rs 6.24 trillion. The government budgeted a fiscal deficit of Rs 6.24 trillion for FY19, or 3.3% of the GDP.

Fiscal deficit at the same point last fiscal was 96.1% of full year estimates.

Fiscal Deficit Over the Years

Notably, the government missed its fiscal deficit target for FY18 by 30 basis points. Against a target of 3.2%, the government managed to keep fiscal deficit at 3.5% in FY18. It has also outlined the projected fiscal deficit target of 3.3% in FY19 in its budget.

Maintaining this deficit target in FY19 won't be easy. Fiscal deficit basically means the amount a government earns minus the amount it has to spend. The lesser the fiscal deficit, the better the government has performed.

In the past, the government has relied on reducing expenditure to keep the fiscal deficit in check.

For this year, the government was banking on earning much more than it has in the past. It expected a major portion of the revenue to be collected through GST tax collections. Also, the recent rise in crude oil prices has cast a doubt over how much the government will be to curb its spending. It also needed to revive the economy from the shock of Notebandi.

The dual pressure of increasing expenditure and lower inflows has made this FY19 deficit target an uphill challenge.Fiscal deficit surged, as revenue collections moderated while government spending remained largely flat during the period, as per data released by the Comptroller General of Accounts.

Overall receipts at the end of October are pegged at 44.4% of budget estimates against 48% same time last year. Tax revenues were 45.7% of full-year estimates at the end of October against 48.1% in the corresponding period last year. Meanwhile, expenditure has been in line with the trend at 59.6% of the budgeted amount for April-October against 60.2% corresponding period last year.

Disinvestment receipts have also been low at Rs 101 billion against a budget target of Rs 800 billion.