HDFC Bank: Despite merger, stock may remain sideways, caution analysts

Shares of HDFC Bank gained 3.2 per cent on the BSE in Monday's intra-day trade to hit a fresh record high of Rs 1,758 apiece

With the merger between HDFC Bank and HDFC Ltd complete, analysts said the next key monitorable for the Street would be successful resolution of merger-related hiccups, including employee-related churn and roll out of complete banking services across branches.

At the bourses, they expect the stock to perform in-line with the benchmark indices in the near-term.

"There's usually an initial period of consolidation after a merger as the entities work towards integration. This may lead to short-term market volatility," said