Why is Bajaj Finance falling/rising?

As of 01-Sep, Bajaj Finance Ltd is experiencing a price increase, currently at 890.35, reflecting a rise of 12.55 or 1.43%. The stock has shown a positive trend, gaining for the last three days with a total return of 1.58% during this period. Despite a decline in delivery volume by 16.31% against the 5-day average, the stock remains liquid enough for trading. Over the past month, Bajaj Finance has outperformed the benchmark Sensex, with a return of 1.53% compared to the Sensex's -0.29%. The company has demonstrated strong long-term fundamentals, including a healthy average return on equity of 17.05% and consistent positive results over the last 16 quarters, which contribute to its recent price movement.
In the broader market context, while the stock has generated a return of 23.55% over the past year, the benchmark has seen a decline of 2.43%, indicating that Bajaj Finance is outperforming the market significantly. This strong performance is supported by high institutional holdings at 36.31%, suggesting confidence from more sophisticated investors. However, the stock is considered expensive with a high price-to-book value and a PEG ratio of 2, which may pose risks if the company's growth does not meet expectations. Overall, the combination of strong fundamentals and market-beating performance has contributed to the stock's upward movement despite some concerns regarding valuation.