Why is ARC Finance falling/rising?

As of 21-Aug, ARC Finance Ltd's stock price is currently at Rs 0.85, reflecting a decrease of Rs 0.02 or 2.3%. The stock has underperformed today, falling by 2.31% compared to its sector. It is trading below all key moving averages, indicating a bearish trend. Additionally, the stock is close to its 52-week low, just 2.35% away from Rs 0.83. Over the past week, the stock has declined by 2.30%, and its year-to-date performance shows a significant drop of 37.96%. The company's weak fundamentals are highlighted by a low return on equity (ROE) of 1.35% and a substantial decline in profits, with a 95.8% drop in PAT for the latest quarter. The majority of shareholders are non-institutional, which may contribute to the stock's volatility.
In the broader market context, the Sensex has shown a positive return of 1.74% over the past week, contrasting sharply with ARC Finance's decline. This underperformance against the benchmark reflects investor sentiment that is likely influenced by the company's weak financial results and falling investor participation, as evidenced by a 4.37% decrease in delivery volume. The stock's valuation appears expensive relative to its peers, further exacerbating its struggles in a market that is otherwise performing well. Overall, the combination of poor financial performance, high valuation, and negative market sentiment has led to the stock's decline.