Why is Bajaj Finance falling/rising?

As of 07-Aug, Bajaj Finance Ltd is experiencing a slight increase in its stock price, currently at 878.80, reflecting a change of 2.25 or 0.26% upwards. Today's price summary indicates that the stock's performance is in line with its sector, although it is trading higher than its 200-day moving average but lower than its 5-day, 20-day, 50-day, and 100-day moving averages. Despite a recent decline in investor participation, with delivery volume dropping by 33.45% against the 5-day average, the company has demonstrated strong long-term fundamental strength, evidenced by a healthy average return on equity of 17.05% and consistent positive results over the last 16 quarters. The stock has outperformed the broader market, generating a 32.33% return over the past year compared to the Sensex's 1.45%.
In the broader market context, Bajaj Finance's short-term performance has been relatively stable, with a 1-week return of -0.22%, which is better than the Sensex's decline of -0.69%. While the stock has shown impressive long-term growth, its valuation appears expensive with a price-to-book ratio of 5.6, which may raise concerns among some investors. The stock's ability to maintain a significant market cap and its high institutional holdings suggest confidence from larger investors, which could support its price movement despite the recent dip in trading volume. Overall, the combination of strong fundamentals and market-beating performance contributes to the stock's resilience in a challenging market environment.