ICICI Bank (IBN) shares plummeted 5.04% in Monday's pre-market trading session, following the release of its fiscal second-quarter results and an analyst downgrade. The sharp decline comes despite the bank reporting a rise in consolidated net profit, suggesting investors were not impressed by the overall financial performance.

According to the company's filing, ICICI Bank's consolidated net profit increased to 133.6 billion Indian rupees in Q2, up from 129.5 billion rupees a year ago. Earnings per share also climbed to 18.42 rupees from 18.05 rupees. However, the modest growth appears to have fallen short of market expectations, contributing to the stock's significant drop.

Adding to the negative sentiment, Avendus Spark downgraded ICICI Bank from Buy to Add, with a price target of INR1,643. This downgrade likely fueled further selling pressure on the stock. Moreover, ICICI Bank underperformed some of its competitors in the previous trading session, with IndusInd Bank and State Bank of India posting gains while ICICI Bank shares slipped. The combination of disappointing earnings, analyst downgrade, and relative underperformance appears to have triggered a substantial sell-off in ICICI Bank shares.