In terms of stock preferences, Kotak continues to favour frontline private sector banks, citing stronger franchises and better execution capabilities. Among these, HDFC Bank and ICICI Bank remain its top picks, with the brokerage suggesting that Axis Bank will need to show stronger performance to justify any valuation premium over peers. Within the public sector space, State Bank of India (SBI) is the preferred exposure, given its size, balance sheet strength and ability to benefit from improving sector dynamics.
