Why is Bajaj Finance falling/rising?

As of 31-Jul, Bajaj Finance Ltd's current price is 880.75, reflecting a decline of 4.25 (-0.48%). The stock has been experiencing a downward trend, having fallen for the last two consecutive days, with a total drop of -0.7% in this period. It opened the day with a loss of -2.11% and reached an intraday low of Rs 866.35. In terms of performance, the stock has underperformed in the short term, with a 1-week return of -8.16% compared to the Sensex's -1.22% and a 1-month return of -5.96% against the Sensex's -3.00%. Despite a strong long-term performance with a year-to-date increase of +28.95% and a 1-year return of +29.36%, the stock's recent decline can be attributed to falling investor participation, as evidenced by a significant drop in delivery volume by -62.04% compared to the 5-day average.
In the broader market context, while Bajaj Finance has shown resilience with a market-beating performance over the past year, the overall market has been struggling, as indicated by the BSE500's negative return of -3.20%. The stock's current valuation appears expensive, with a Price to Book Value of 5.7, which may deter some investors in the short term. Additionally, the company's high institutional holdings at 36.31% suggest that informed investors are closely monitoring its fundamentals, which could influence market sentiment. Overall, the combination of recent price declines, reduced trading activity, and high valuation concerns may be contributing to the stock's current downward movement.