Why is Bharat Forge falling/rising?

As of 31-Jul, Bharat Forge Ltd. is experiencing a decline in its stock price, currently at Rs 1,162.25, which reflects a decrease of Rs 25.5 or 2.15%. The stock has been on a downward trend, losing 4.78% over the last two days and opening with a loss of 3% today, reaching an intraday low of Rs 1,145.4. It is trading below all its moving averages, indicating weak momentum. Over the past week, the stock has declined by 4.37%, and it has underperformed significantly over the past month and year, with returns of -9.67% and -32.94%, respectively. Despite these challenges, the company shows healthy long-term growth potential, with operating profit increasing at an annual rate of 26.27% and a return on capital employed (ROCE) of 13.7%. The stock is currently trading at a discount compared to its peers, and high institutional holdings at 45.78% suggest confidence from more knowledgeable investors.
In the broader market context, Bharat Forge's recent performance contrasts sharply with the benchmark Sensex, which has only declined by 1.22% over the past week and has gained 3.90% year-to-date. This underperformance highlights the stock's struggles relative to the overall market. The castings and forgings sector, to which Bharat Forge belongs, has also seen a decline of 2.19%, indicating sector-wide challenges. However, the stock's liquidity remains adequate, with a significant increase in delivery volume, suggesting that investor participation is rising despite the price drop. Overall, while the stock faces short-term pressures, its long-term growth prospects and institutional backing may provide some resilience moving forward.