Why is AU Small Finance falling/rising?

As of 28-Jul, AU Small Finance Bank Ltd's stock price is currently at 724.30, reflecting a decrease of 8.0 points or 1.09%. The stock has been underperforming recently, with a consecutive fall over the last two days, resulting in a total decline of 2.5%. Additionally, the stock has underperformed its sector by 0.34% today. In terms of returns, the stock has seen a negative performance of 10.99% over the past month and 3.84% over the past week, while it has outperformed the benchmark over the year with an 11.35% return compared to the Sensex's -0.54%. Despite these recent declines, the company maintains strong long-term fundamentals, including a high Capital Adequacy Ratio of 21.50% and a solid Return on Assets (ROA) of 1.91%, which may support its valuation in the long run.
Broader Market Context: The stock's recent performance contrasts with the broader market, as the Sensex has only declined by 1.59% over the past week and 3.77% over the past month. This indicates that AU Small Finance Bank is facing specific challenges that are not as prevalent in the overall market. Furthermore, the stock's liquidity remains adequate, with a delivery volume that, despite falling significantly, still supports trading activity. The high institutional holdings at 66.56% suggest that knowledgeable investors are backing the stock, which could provide some stability despite the recent price decline. Overall, while the stock has shown strong long-term growth potential, the recent short-term performance reflects a period of volatility and investor caution.