New Delhi, July 9 -- As stock market sentiment improves with a decline in crude oil prices, recovery in the Indian rupee, and sporadic buying by FPIs, experts say large private banks could outperform in the near term due to healthy Q1 numbers and value buying by institutional investors.

Most private bank stocks have delivered healthy gains this year so far, defying weak market sentiment due to geopolitical and geoeconomic shocks, foreign capital exodus, and weak earnings-high valuation mismatch.

Till 8 July in Calendar 2026, the Nifty Private Bank index has declined 4% compared to a 5% fall in the Nifty Bank and an almost 9% fall in the benchmark Nifty 50.

Stocks such as Bandhan Bank (up 34%), Federal Bank (up 22%), IndusInd Bank (up 1...