Archive · 31 Jan 2026
ICICI Prudential AMC on Market Valuations and Investment Strategies
Dharmesh Kakkad from ICICI Prudential AMC says that while Indian stock market valuations are reasonable due to FII selling, they are not yet cheap.
He advises investors to focus on quality stocks that perform well during volatile times.
The earnings downgrade cycle is expected to end soon, with government and RBI support aiding growth recovery.
Kakkad suggests a balanced investment approach, focusing on sectors like technology, FMCG, pharmaceuticals, and private banks, which offer good risk-reward opportunities.
He emphasizes the importance of patience and not anchoring expectations on past strong market performance.
Additionally, dividend-paying stocks like ONGC, ITC, Hindustan Zinc, NMDC, and Power Grid are highlighted for their steady cash flows and consistent payouts, making them attractive for long-term investors.
Indian stock market valuations are reasonable but not cheap due to FII selling.
Earnings downgrade cycle is likely ending, with government and RBI support aiding growth recovery.
Investors should focus on quality stocks and sectors with muted expectations and low ownership.
Recommended sectors for investment include technology, FMCG, pharmaceuticals, oil & gas, life insurance, and private banks.
Adhering to asset allocation and a disciplined relative-value framework is crucial for managing portfolios amid volatility.
- Who
- Dharmesh Kakkad, Senior Fund Manager, ICICI Prudential AMC
- What
- Analysis of current market valuations and investment strategies
- When
- Current market environment
- Where
- Indian stock market
- Why
- To guide investors on managing return expectations and portfolio management amid volatility
Growth Investors
Value Investors
Investment Focus
Growth Investors
Growth investors focus on stocks with high growth potential, often ignoring current valuations and dividends.
Value Investors
Value investors prioritize stocks with reasonable valuations and steady dividends, focusing on cash flow and balance sheet strength.
- Expert
- Dharmesh Kakkad, Senior Fund Manager, ICICI Prudential AMC
- Market Valuations
- Reasonable but not cheap
- Earnings Outlook
- Downgrade cycle likely ending
- Recommended Investment Style
- Quality or blend of quality and value
- Favored Sectors
- Technology, FMCG, Pharmaceuticals, Oil & Gas, Life Insurance, Private Banks
- Fund Performance
- ICICI Prudential Value Fund leads its category
- Investor Advice
- Adhere to asset allocation, focus on quality stocks
- Macro Environment
- Supportive for growth recovery
Sources
Market valuations still not cheap; don't peg return expectations on past trends: Dharmesh Kakkad, ICICI Prudential AMC
Harish Krishnan says markets are in reset mode, urges investors to look beyond market caps
Five dividend stocks to watch for the next 3 years
