Why is Bajaj Finance falling/rising?

As of 30-Jul, Bajaj Finance Ltd is currently priced at 885.00, reflecting a decrease of 2.0 (-0.23%). The stock has underperformed its sector by 0.33% today, and while it is above the 200-day moving average, it is below the 5-day, 20-day, 50-day, and 100-day moving averages. Over the past week, the stock has declined by 8.59%, and over the past month, it has fallen by 5.47%. Despite these short-term declines, Bajaj Finance has shown strong long-term performance, with a year-to-date return of 29.58% and a one-year return also at 29.58%, significantly outperforming the broader market, which has only generated a return of 0.03%. The company has demonstrated robust fundamentals, with a strong average return on equity of 17.05%, consistent positive quarterly results, and high institutional holdings at 36.31%, indicating confidence from knowledgeable investors.
In the broader market context, the stock's recent performance contrasts with the benchmark Sensex, which has declined by 1.50% over the past week and 2.54% over the past month. While Bajaj Finance has outperformed the market over the longer term, its current price movement reflects a short-term struggle amidst a challenging market environment. The stock's high valuation, indicated by a price-to-book value of 5.7, may also contribute to its recent price decline, as it trades at a premium compared to its peers. Despite these challenges, the company's strong fundamentals and market position suggest potential for recovery in the future.