Why is CEAT falling/rising?

As of 08-Aug, CEAT Ltd's stock price is currently at Rs 3,160.60, reflecting a decrease of Rs 52.0 or 1.62%. The stock has been underperforming, having fallen consecutively for the last two days with a total decline of 1.89%. It has also touched an intraday low of Rs 3,140, which represents a 2.26% drop. In terms of performance, CEAT has underperformed its sector by 1.13% today and has shown a significant decline of 17.11% over the past month, while the stock has generated a return of 19.61% over the past year despite a 32.9% drop in profits. The stock is currently trading above its 200-day moving average but below its shorter-term moving averages, indicating mixed signals. Additionally, there has been a notable decrease in investor participation, with delivery volume dropping by 68.51% compared to the five-day average.
In the broader market context, CEAT's recent performance contrasts with the benchmark Sensex, which has only declined by 0.92% over the past week. While CEAT has shown strong long-term growth with net sales increasing at an annual rate of 17.13%, the recent price drop may be influenced by falling profits and reduced investor interest. Despite high institutional holdings at 37.47%, which suggests confidence in the company's fundamentals, the stock's current valuation remains attractive compared to its peers. Overall, while CEAT has outperformed the market over the past year, the recent trends indicate challenges that may be affecting investor sentiment and stock performance in the short term.