Why is Bajaj Finance falling/rising?

As of 05-Jun, Bajaj Finance Ltd's stock price is currently at 8,933.00, reflecting a decrease of 52.15 points or 0.58%. The stock has underperformed its sector today by 0.95%, with a notable decline in investor participation as evidenced by a 30.31% drop in delivery volume compared to the 5-day average. Over the past week, the stock has seen a decline of 2.94%, contrasting with a slight gain of 0.01% over the past month. Despite this recent downturn, the company has demonstrated strong long-term fundamentals, including a consistent return on equity of 17.05% and impressive growth in net sales and operating profit. However, the stock's valuation appears expensive, trading at a premium compared to its peers, which may be contributing to the current price decline.
In the broader market context, Bajaj Finance's recent performance contrasts with the benchmark Sensex, which has only decreased by 0.23% over the past week. While the stock has outperformed the market significantly over the past year, generating a return of 30.60% compared to the Sensex's 9.49%, the current price movement suggests a correction may be underway. The stock's technical indicators are mildly bullish, and it maintains high institutional holdings at 36.32%, indicating confidence among larger investors. However, the combination of high valuation metrics and falling investor participation may be weighing on the stock's price in the short term.