Why is Bajaj Finance falling/rising?

As of 01-Aug, Bajaj Finance Ltd's stock price is currently at 876.95, reflecting a decrease of 3.8 points or 0.43%. The stock has been experiencing a downward trend, having fallen consecutively for the last three days, resulting in a total decline of 1.13% during this period. In the past week, the stock has underperformed with a return of -4.02%, compared to the Sensex's decline of only -1.06%. Despite this recent downturn, the stock has shown strong long-term performance, with a year-to-date increase of 28.40% and a one-year return of 29.49%. The company's fundamentals remain robust, highlighted by a strong average return on equity (ROE) of 17.05% and consistent positive results over the last 16 quarters, which may support its long-term value despite the current price drop.
In the broader market context, Bajaj Finance's recent performance contrasts with the benchmark, as it has significantly outperformed the BSE500 index, which has generated negative returns of -4.13% over the past year. However, the stock's recent decline may be attributed to falling investor participation, as evidenced by a 40.34% drop in delivery volume compared to the five-day average. Additionally, the stock is trading at a premium valuation, which could be a concern for investors, especially given that its profits have not kept pace with its stock price increase. This combination of high valuation and declining short-term performance may be contributing to the stock's current downward movement.