Why is CEAT falling/rising?

As of 28-Jul, CEAT Ltd's stock price is currently at Rs 3,319.55, reflecting a decline of Rs 61.55 or 1.82%. The stock has underperformed its sector by 1.23% today, having touched an intraday low of Rs 3,275, which represents a decrease of 3.14%. Over the past week, CEAT's stock has decreased by 7.82%, while it has fallen by 8.54% over the past month. Despite a strong long-term growth trajectory with net sales increasing at an annual rate of 17.13% and operating profit at 19.67%, the stock's profits have fallen by 32.9% over the past year, contributing to its current price decline. Additionally, while the stock is trading at a discount compared to its peers, it is currently below several shorter-term moving averages, which may signal bearish sentiment among investors.
In the broader market context, CEAT's recent performance contrasts with the benchmark Sensex, which has only declined by 1.59% over the past week and 3.77% over the past month. This indicates that CEAT is underperforming relative to the overall market. However, the stock has shown strong long-term performance, with a 26.94% return over the past year and significant gains over three and five years. The high institutional holdings at 37.47% suggest confidence from larger investors, who have increased their stake recently, indicating potential for future recovery. Despite these positive indicators, the recent profit drop and underperformance in the short term have led to the current decline in stock price.