Asian stock markets are trading in green as market participants track the inauguration of liberal candidate Moon Jae-in after his win in the South Korean presidential election. The Shanghai Composite is trading up by 0.3%, while the Hang Seng is up 0.8%. The Nikkei 225 is up 0.2%.

Meanwhile, Indian share markets have opened the day on a positive note. The BSE Sensex is trading higher by 145 points and the NSE Nifty is trading higher by 45 points. Meanwhile, S&P BSE Mid Cap and S&P BSE Small Cap are trading higher by 0.8% and 0.7% respectively. Gains are largely seen in FMCG stocks, auto stocks and power stocks.

The rupee is trading at 64.67 against the US$.

In news from stocks in the pharma sector. Lupin share price is in focus today after the company said it received eight observations in Form-483 from The US Food and Drug Administration (USFDA) for its Aurangabad formulation facility.

Form 483 relates to certain critical observations issued to a company at the end of an inspection if there were any violations of the Food Drug and Cosmetic Act and other related acts of the US Government.

Companies that receive its observations must respond in writing with a corrective action plan and implement it quickly. If the company does not meet the USFDA's expectations, a warning letter may be issued.

Lupin said that it is in the process of responding to the observations.

The USFDA completed inspection of the Aurangabad facility late in April. Notably, Lupin's Goa facility too was inspected and a form 483 related to violation of norms was issued just last week. The Goa facility is an important unit for the company as its accounts for 30-40% of US sales, while the Aurangabad plant makes up about 10-15% of the company's US sales.

The Indian pharmaceutical industry has come under a lot of regulatory pressure in the past few years. The sector has faced great volatility over the years.

Volatility in the Pharma Sector

We had recently written about the current predicament of Indian pharma companies in one of the premium editions of the 5 Minute Wrap Up:

• Over the past few years, risk in the US markets has increased. The US Food and Drug Administration has become stricter on products entering US borders. Surprise inspections have increased and companies are being issued warning letters. This has impacted the business and earnings of Indian pharma players, causing major volatility for the sector.

Moving on to news from stocks in the banking sector. India's second-largest private lender HDFC Bank's share price is in focus today as the bank announced that it raised debt worth Rs 80 billion through private placement of bonds.

The bank issued additional Tier-I (AT1) bonds through online bidding of securities on the National Stock Exchange.

The perpetual bonds, which have no maturity date, carry a coupon of 8.85%, the lowest pricing on such debt issued by any Indian lender in 2017, according to Bloomberg. India Ratings and Research has given the highest rating of AA+ to the AT 1 perpetual debt bond. A bond issuance is a cheaper source of capital than raising equity.

This is likely to be the biggest offering of perpetual debt as the bank seeks to raise capital after the profitability has been slower than its trademark 25-30% growth rate over the last two decades.

The bank's board in April had approved issuance of Rs 500 billion of debt comprising perpetual, tier-2 and long-term infrastructure bonds over the next year.

HDFC Bank's capital adequacy ratio at the end of March 2016, fell to 14.6 percent from 15.5% a year ago, with the Tier-I capital adequacy ratio falling 40 basis points to 12.8 percent from 13.2%.

With one of the lowest NPA (non-performing asset) levels, HDFC Bank's asset quality in March 2017 has remained stable at 1.05%, up marginally from 0.94% a year ago.