Shares of HDFC Bank Ltd , India's biggest lender by market capitalisation, fell as much as 3.1 per cent per cent to Rs 2,301, their lowest since May 16.

The bank on Saturday reported a 21 per cent rise in June-quarter profit , but said gross NPAs, a measure of asset quality, rose to 1.4 per cent vs 1.36 per cent in the previous quarter.

Provisions jumped 60.4 per cent to Rs 26.14 billion ($378.81 million), due to stress in the bank's agri portfolio.

Loan growth slowed to 17.1 per cent at the June quarter-end, vs 24.5 per cent at the March-quarter end, as advances to the vehicle loan segment moderated.

“Even the bellwether isn't immune to the economic slowdown” , Macquarie Research said.

The stock's wave pattern suggests that it has completed a five-wave uptrend and is in the initial wave of a three-wave correction.

In the near term, shares have support at Rs 2,273.31. However, this correction is expected to continue for a couple of months and the stock is expected to test a support at Rs 1,901.54, the 38.2 per cent Fibonacci retracement level of the entire uptrend.

The stock marked its sharpest intra-day drop since end-May; it was the top drag in the NSE index, which is down 0.74 per cent as of 0427 GMT.

Around 1 million shares changed hands in early trade, vs the 30-day average of 2.6 million shares.

Forty-one of the 46 analysts covering the stock have “buy” or ”strong buy” ratings, 4 have “hold” and 1 “sell”; median PT 2,700 rupees, according to Refinitiv data.

The stock is up 12 per cent this year up to the last close.

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