ETMarkets Smart Talk | Don’t chase growth at any valuation; rising US yields can pressure P/E multiples: Manish Kumar
ICICI Bank is in focus in a quarterly results development.
19 Sept 2026 · Economic Times Markets
Midcap and smallcap stocks are hitting record highs, but rising valuations and higher US Treasury yields could challenge the rally. ICICI Prudential Life Insurance CIO Manish Kumar discusses earnings visibility, domestic liquidity, FII selling, IPO supply and valuation discipline, while explaining why investors should avoid chasing growth at any price.
The analysis
Against that, the stock is +0.9% on the day at ₹1,355.20, and has returned -4.7% over three months. It sits 7% below its 52-week high. The banks sector has moved -4.0% over the same period, so ICICI Bank is running 0.7 points behind its peers.
This is an Index / institutional flows event. Passive and institutional flows move price independently of fundamentals, and around rebalancing dates they dominate it. On the day the stock is +0.9%, so a modest reaction.
For ICICI Bank, the question is how much of this is already reflected in the price and how much re-rates the banks peer set alongside it.
Why it matters
- Earnings versus expectations is what actually re-rates a stock; the surprise matters more than the absolute number.
- Rate decisions ripple straight into banks, NBFCs and every rate-sensitive sector — from real estate to autos.
- Sustained FII or DII direction moves the whole market, not just the names being bought — it sets the tape's tone.
Market context
- The company directly in focus is ICICIBANK.
- Sector exposure: Banks.
- The immediate tone of coverage reads positive.
In this story
Related coverage
Banks vs NBFCs: Which stocks could benefit as RBI set to hike rates for the first time in 3 years?
ICICI Prudential Life Insurance to focus on growing absolute VNB amid slump in FY24
ICICI Pru Life Q4 net profit falls 26% to Rs 174 cr, insurer announces dividend
RBI to hike repo rate by 25 bps? These rate sensitive sectors will be in focus on Wednesday
Banks, RIL power Nifty's 1% rally ahead of RBI monetary policy decision