Hoping for progress!

Progress is the activity of today and the assurance of tomorrow- Ralph Waldo Emerson

This weekend is no time to relax. Investors globally will anxiously wait to see the direction of the weekend meeting of European leaders for a comprehensive solution to the euro zone crisis. There is no consensus on how to strengthen a euro zone rescue fund. Immediate decision or solution is far fetched but signs of progress will provide some assurance. A plan is expected to be adopted by coming Wednesday.



The start is set to be positive with a cautious undertone. Asian markets have managed to claw up. US indices put up a mixed show. After dropping over a percentage each, the Dow managed to end 37 points higher while the Nasdaq slipped 5 points. Greek parliament passing latest package of austerity measures brought some relief. With Libyan leader Moammar Gadhafi dead, expectations are the country's oil production will return to full capacity.

Back home, inflationary pressures remain a cause for concern adding pressure on the RBI to continue its rate-raise cycle. Food inflation climbed back to double digits at 10.6%.

Dr C. Rangarajan has advocated a diesel price hike when inflation comes down cautioning that the fiscal deficit could be higher than 4.6%.

In other news, State Bank of India, despite pressure on interest rates, expects to achieve a net interest margin of over 3.5% in the second quarter as well as for the whole year. Reports state that Tata Motors is looking to raise $750 million via overseas borrowing.