Why is CEAT falling/rising?

As of 08-Sep, CEAT Ltd's stock price is currently at Rs 3,383.30, reflecting an increase of Rs 27.45, or 0.82%. The stock has been performing well recently, having outperformed its sector by 1.04% today and achieving a consecutive gain over the last three days, with a total return of 2.01% during this period. Additionally, CEAT has shown strong performance over various time frames, with a 1-year return of 18.33% compared to a negative return of -0.49% for the Sensex. However, it is important to note that while the stock has been gaining, there has been a significant drop in investor participation, with delivery volume falling by 76.67% against the 5-day average. The stock is trading at a discount compared to its peers, supported by healthy long-term growth metrics, such as a 17.13% annual increase in net sales and a 19.67% rise in operating profit.
In the broader market context, CEAT's recent performance has been notably strong, especially considering that the BSE500 index has generated negative returns of -3.07% over the past year. This contrast highlights CEAT's ability to deliver positive returns even in a declining market environment. The stock's high institutional holdings at 37.47% suggest that knowledgeable investors are confident in its fundamentals, as evidenced by a 0.68% increase in their stake over the previous quarter. Overall, CEAT's rising stock price can be attributed to its solid financial performance, attractive valuation, and the support of institutional investors, despite the recent decline in trading volume.