HDFC Bank shares fell 5% on Tuesday following the resignation of the bank's part-time chairman over ethics-related concerns. The departure from India's largest private bank by assets contributed to a broader decline in Indian equity markets.

The resignation comes at a time when Indian markets are facing multiple headwinds. Rising oil prices have added pressure to the country's import-dependent economy, while expectations of continued hawkish monetary policy from the U.S. Federal Reserve have weighed on emerging market sentiment.

HDFC Bank, a key component of major Indian stock indices, has been among the most closely watched financial institutions in the country. The bank's performance often serves as a barometer for the broader Indian banking sector and economy.

The combination of corporate governance concerns at HDFC Bank and macroeconomic pressures contributed to a challenging trading session for Indian equities. Market participants are monitoring developments at the bank while also assessing the impact of global monetary policy shifts on domestic markets.

The banking sector has been particularly sensitive to both domestic corporate developments and international factors, including oil price volatility and Federal Reserve policy expectations, which influence capital flows to emerging markets like India.