Why is CARE Ratings falling/rising?

Aug 20 2025 09:29 PM IST
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As of 20-Aug, CARE Ratings Ltd's stock price is Rs 1,577.00, down 1.74% after four consecutive days of decline. Despite strong fundamentals and long-term gains, recent volatility and a significant drop in delivery volume indicate decreased investor participation, contributing to its short-term underperformance.
As of 20-Aug, CARE Ratings Ltd's stock price is currently at Rs 1,577.00, reflecting a decrease of Rs 28.0 or 1.74%. The stock has been underperforming, having fallen for the last four consecutive days, resulting in a total decline of 5.1% over the past week. Although the stock opened with a gain of 2.06% today and reached an intraday high of Rs 1,638, it also touched a low of Rs 1,571, indicating volatility. The stock's performance over the past month shows a decline of 11.13%, contrasting sharply with its year-to-date increase of 16.36% and a remarkable 59.10% rise over the past year. Despite the company's strong fundamentals, including positive results for the last eight quarters and a low debt-to-equity ratio, the recent drop in delivery volume by 63% against the five-day average suggests a decline in investor participation, contributing to the stock's downward movement.

In the broader market context, while the Sensex has gained 1.64% over the past week, CARE Ratings' performance has lagged significantly, indicating a divergence from the overall market trend. The stock's recent underperformance, particularly in the short term, contrasts with its strong long-term returns, which have outpaced the broader market over one year and three years. This discrepancy suggests that while the company has solid fundamentals and institutional support, the current market sentiment and declining trading volume may be influencing the stock's recent price decline.
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