Why is Bajaj Finance falling/rising?

As of 06-Aug, Bajaj Finance Ltd is currently priced at 876.55, reflecting a decrease of 14.9 points or 1.67%. Today's price summary indicates that the stock has underperformed its sector by 1.41% and has experienced a trend reversal after two consecutive days of gains. The stock's delivery volume has also fallen significantly, down 35.56% from the 5-day average, suggesting a decline in investor participation. Over the past week, the stock has decreased by 0.95%, while it has shown a more substantial decline of 5.26% over the past month. Despite these short-term challenges, the company has demonstrated strong long-term fundamentals, with a consistent return on equity of 17.05% and impressive growth in net sales and operating profit. However, the stock's high valuation, trading at a premium compared to peers, may be contributing to its recent price decline.
In the broader market context, Bajaj Finance's recent performance contrasts with the benchmark Sensex, which has declined by 1.15% over the same week. While the stock has outperformed the market significantly over the past year with a return of 33.67% compared to the Sensex's 2.48%, its short-term struggles may reflect broader market sentiments or sector-specific challenges. The stock's liquidity remains adequate, but the falling investor participation could indicate a cautious outlook among investors, especially given the stock's expensive valuation relative to its peers.