Why is CEAT falling/rising?

As of 18-Jul, CEAT Ltd's stock price is currently at Rs 3,820.00, reflecting a decrease of Rs 35.25, or 0.91%. The stock has been experiencing a consecutive decline over the last four days, resulting in a total drop of 1.87% during this period. Today's performance aligns with the sector, although the stock reached an intraday low of Rs 3,760, marking a 2.47% decline. Despite this recent downturn, CEAT has shown strong long-term growth, with a 37.96% return over the past year, although its profits have decreased by 32.9%. The stock is trading at a discount compared to its peers, and high institutional holdings at 37.47% suggest confidence in its fundamentals, as these investors have increased their stake by 0.68% in the last quarter.
In the broader market context, CEAT's short-term performance contrasts with the benchmark, as it has gained 2.65% over the past week while the Sensex has declined by 0.90%. This indicates that CEAT has been outperforming the market in the short term, despite its recent price drop. The stock's liquidity remains adequate for trading, although there has been a notable decline in delivery volume, which fell by 37.47% compared to the five-day average. Overall, while CEAT has demonstrated strong long-term performance and growth potential, the recent price decline may be attributed to short-term market fluctuations and reduced investor participation.