Moderate growth expectation

Updated: Dec 31 2006, 06:47am hrs
One of the key trends that we will notice in 2007 is that of interest rates moving up. There will be a pressure on margins. One could also notice a slowdown in credit offtake. Importantly, we will see growth expectations moderating down.

I would wish for peak duty rates coming down, it would be great to see mid-caps contributing to the stock market rally. My wish list also includes the markets stabilising with lower volatility.

On the concerns front, the prospects of a US slowdown, interest rate and cost push are strong. Also an appreciating rupee can be a cause for concern.

The author is head-research, ICICI Securities