New Delhi, March 31 -- It has been a tough month for Indian investors with broad market indices slipping 7-9%. Against this war-driven, gloomy backdrop, one stock has had it particularly rough: HDFC Bank.

For India's largest private sector bank, the drop in overall sentiment has coincided with rumours of governance issues, fuelled by the resignation of its chairman, Atanu Chakraborty. Weighed further down by recent reports from international brokerage firm Jefferies on its holding in the bank, the stock extended its decline to over 10%. It has sharply underperformed the 4% fall in the Nifty Private Bank Index since Chakraborty's resignation on 18 March.

If this is a case of market overreaction, with fundamentals remaining largely intact...