Why is Bajaj Finance falling/rising?

As of 12-Aug, Bajaj Finance Ltd is experiencing a decline in its stock price, currently at Rs 852.90, which reflects a decrease of Rs 25.2 or 2.87%. The stock has underperformed its sector by 1.96% today and reached an intraday low of Rs 852, indicating a bearish trend. Over the past week, the stock has fallen by 4.32%, and in the last month, it has decreased by 8.62%. Despite a strong long-term performance with a year-to-date return of 24.88% and a one-year return of 29.03%, the stock's recent price movement is influenced by its higher valuation compared to peers, as indicated by a Price to Book Value of 5.5, which suggests it may be considered expensive. Additionally, while the company has shown strong fundamentals with consistent positive results over the last 16 quarters, the recent profit growth of only 16.7% compared to its stock performance raises concerns about sustainability.
In the broader market context, Bajaj Finance's recent performance contrasts with the benchmark Sensex, which has only declined by 0.59% over the past week and 2.75% over the past month. This indicates that while the overall market is experiencing a downturn, Bajaj Finance is underperforming significantly. The stock's liquidity remains adequate for trading, but the high institutional holdings suggest that larger investors are cautious about the stock's valuation. Overall, the combination of high valuation concerns, recent underperformance relative to both its sector and the broader market, and the stock's movement below key moving averages contribute to the current downward trend in Bajaj Finance's stock price.