Why is Chola Financial falling/rising?

As of 18-Jul, Cholamandalam Financial Holdings Ltd is experiencing a decline in its stock price, currently at Rs 2,119.00, reflecting a decrease of Rs 27.7 or 1.29%. Today's price summary indicates that the stock has underperformed its sector by 1% and has seen a trend reversal after three consecutive days of gains. The stock touched an intraday low of Rs 2,086.75, marking a decline of 2.79%. Despite this drop, Cholamandalam has shown strong performance over various periods, with a year-to-date return of 51.56% and a three-year return of 220.55%. The company has consistently declared positive results for the last ten quarters, with record net sales and cash equivalents, and maintains a high return on equity of 17.4%. Additionally, the stock is trading at a discount compared to its peers, which may attract investors despite the recent price drop.
In the broader market context, Cholamandalam's short-term performance has outpaced the Sensex, with a one-week return of 2.83% compared to the benchmark's decline of 0.90%. This indicates that while the stock is currently facing a temporary setback, it has been resilient in the longer term, outperforming the BSE500 over the last three years. The high institutional holdings at 39.94% suggest that knowledgeable investors are backing the stock, which may provide some stability. However, the recent price decline could be attributed to profit-taking after a strong rally, as indicated by the increased delivery volume and liquidity, suggesting that investor sentiment remains cautiously optimistic despite the current downturn.