Why is CEAT falling/rising?

As of 25-Jul, CEAT Ltd's stock price is currently at 3,381.10, reflecting an increase of 24.1, or 0.72%. The stock has shown a mixed performance recently, with a notable decline of 11.49% over the past week and 6.95% over the past month, although it has generated a positive return of 29.86% over the past year. Today's performance indicates that the stock has outperformed its sector by 1.72%, and there has been a significant increase in investor participation, with delivery volume rising by 181.24% compared to the 5-day average. Despite the recent profit decline of 32.9%, the company maintains healthy long-term growth metrics, with net sales and operating profit growing at annual rates of 17.13% and 19.67%, respectively. The stock is also trading at a discount compared to its peers, supported by high institutional holdings that have increased by 0.68% over the previous quarter.
In the broader market context, while CEAT's short-term performance has been negative compared to the benchmark Sensex, which has only declined by 0.36% over the same week, the stock has outperformed the benchmark in the long term, with a 181.09% return over the past three years compared to the Sensex's 46.08%. This indicates that despite recent volatility, CEAT has shown resilience and potential for growth, particularly with its strong institutional backing and attractive valuation metrics. Overall, the stock's recent rise can be attributed to positive investor sentiment and participation, alongside its long-term growth prospects, even as it faces short-term challenges.