New Delhi, Oct. 6 -- While the broader market has remained under pressure, Kotak Mahindra Bank shares have emerged as a notable outperformer, gaining nearly 10% over the past two months even as the Nifty 50 and Bank Nifty declined sharply. Analysts attribute the stock's relative strength to a combination of improving loan growth, stronger Q2 business trends, clarity on the bank's next CEO, better asset quality, and expectations of an earnings recovery.

Between 6 August and 6 October, Kotak Mahindra Bank shares gained around 9.8%, compared with a nearly 5% decline in Bank Nifty and a 7.8% fall in the Nifty 50. The stock was trading at around Rs.430.60, just Rs.22.38, or about 4.9%, below its 52-week high of Rs.452.98.

The stock has also ...