Why is 3i Infotech falling/rising?

As of 03-Sep, 3i Infotech Ltd's stock price is currently at 23.45, reflecting an increase of 0.1 or 0.43%. The stock has been gaining for the last two days, with a total return of 3.3% during this period. It has outperformed its sector by 0.98% today, and the delivery volume has significantly increased by 85.81% compared to the five-day average, indicating rising investor participation. Despite these positive movements, the stock has underperformed over the longer term, with a year-to-date decline of 16.31% and a one-year return of -30.76%. The company has reported positive results for the last three consecutive quarters, with a notable growth in profit after tax and attractive valuation metrics. However, it also faces challenges such as operating losses and weak long-term fundamental strength, which may contribute to investor caution.
In the broader market context, the stock's short-term performance has been more favorable compared to the benchmark, as it has gained 1.30% over the past week while the Sensex has declined by 0.27%. However, the stock's longer-term performance remains concerning, with a significant underperformance against the benchmark over the last three years, where it has lost 50.84% compared to a 37.01% gain in the Sensex. This consistent underperformance, coupled with weak profitability indicators such as a low return on equity and a negative EBIT to interest ratio, suggests that while there may be short-term gains, the overall outlook for the stock remains challenging.