Why is Bajaj Finance falling/rising?

As of 28-Jul, Bajaj Finance Ltd is experiencing a decline in its stock price, currently at Rs 880.40, which reflects a decrease of Rs 33.25 or 3.64%. The stock has underperformed its sector by 2.27% today and has been on a consecutive decline for the last three days, resulting in a total drop of 9.07% during this period. Despite a strong long-term performance with a year-to-date increase of 28.90% and a one-year return of 29.67%, the stock's recent movements are concerning, particularly as it has touched an intraday low of Rs 879.25. The stock is trading above its 200-day moving average but below its shorter-term moving averages, indicating mixed signals. Additionally, while there has been a significant increase in delivery volume, the stock's valuation remains high compared to its peers, which may be contributing to the downward pressure.
In the broader market context, Bajaj Finance's recent performance contrasts with the benchmark Sensex, which has only declined by 1.59% over the past week and 3.77% over the past month. This indicates that while the stock has been underperforming relative to the market, it has still managed to generate substantial returns over the longer term. The market has faced negative returns of -2.52% in the last year, yet Bajaj Finance has outperformed with a return of 29.67%. However, the stock's high valuation, as indicated by its Price to Book Value ratio and the slower growth in profits compared to its stock price appreciation, suggests that investors may be reassessing its future potential, contributing to the recent price decline.