Why is CEAT falling/rising?

As of 09-Sep, CEAT Ltd's stock price is currently at 3,363.15, reflecting a decrease of 20.15 points or 0.6%. The stock has underperformed its sector today by 1.02% and has experienced a trend reversal, falling after three consecutive days of gains. In terms of performance, CEAT has shown a 1-week decline of 0.41%, while over the past month, it has increased by 6.41%. Despite a strong long-term growth trajectory, with net sales growing 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. Additionally, while institutional holdings are high at 37.47%, indicating confidence from larger investors, the recent drop in delivery volume by 60.68% against the 5-day average suggests a decrease in investor participation.
In the broader market context, CEAT's performance contrasts with the benchmark Sensex, which has gained 1.18% over the past week and 1.56% over the past month. Although CEAT has outperformed the market over the past year with a return of 17.74%, the stock's recent decline may reflect a correction after a period of gains and the impact of falling profits. The stock is trading at a discount compared to its peers' average historical valuations, which may provide a cushion against further declines, but the current market sentiment appears cautious, contributing to the stock's downward movement.