Why is Bajaj Finance falling/rising?

As of 18-Sep, Bajaj Finance Ltd is currently priced at 998.15, reflecting a decrease of 8.35 points or 0.83%. The stock has shown strong performance over the past week, with a return of 2.89%, and a notable increase of 10.28% over the past month. Despite this, it has underperformed its sector today by 1.16%. The stock is trading above all its moving averages, indicating a generally positive trend, but there has been a decline in investor participation, with delivery volume falling by 1.29% against the 5-day average. The company has demonstrated strong long-term fundamentals, with a healthy average return on equity of 17.05% and consistent positive results over the last 16 quarters, which supports its valuation despite its current price drop.
Broader market context shows that while Bajaj Finance has outperformed the broader market significantly, generating a 30.78% return over the past year compared to the BSE500's negative return of -1.96%, it is currently facing challenges due to its high valuation metrics, including a Price to Book Value of 6.4, which is considered expensive relative to its peers. This premium valuation, combined with a PEG ratio of 2.2, suggests that the stock may be overvalued, contributing to the recent price decline. Overall, while the company has strong fundamentals and market-beating performance, the current market sentiment and valuation concerns appear to be influencing its recent price movement negatively.