Approach HDFC with caution: Sudip Bandyopadhyay, Destimoney Securities

In a chat with ET Now, Sudip Bandyopadhyay, President of Destimoney Securitie, shares his views on the market. Excerpts:

ET Now: HDFC is an expensive stock which continues to become even more expensive on the valuation front, but that does not deters anybody from buying into it. It is trading at fresh highs and continues to move up. What do you think?

Sudip Bandyopadhyay: The movement is on the back of the rumour of a possible merger between HDFC and HDFC Bank. One does not know how much truth it holds at least in the immediate term, but you can ascribe a significant part of this move to that. The other concern is the FII participation and the counter. Hence, I will be little cautious. It is a great bank, but I am not sure one should jump in at this price.