Why is Chola Financial falling/rising?

As of 24-Jul, Cholamandalam Financial Holdings Ltd is experiencing a decline in its stock price, currently at Rs 2,043.10, which reflects a decrease of Rs 32.3 or 1.56%. The stock has underperformed its sector by 0.82% today and has been on a consecutive downward trend for the last three days, resulting in a total decline of 4.3%. It opened with a loss of 3.58% and reached an intraday low of Rs 2,001.05. Despite this recent downturn, the stock has shown strong performance over the longer term, with a year-to-date increase of 46.13% and a remarkable 221.60% rise over the past three years. The company has consistently reported positive results, including record net sales and cash equivalents, and maintains a strong return on equity of 17.4%, indicating attractive valuation metrics.
In the broader market context, Cholamandalam's short-term performance has been notably weaker compared to the benchmark, as it has declined by 4.83% over the past week while the Sensex has only decreased by 0.09%. Despite the recent price drop, the stock's long-term returns remain robust, outperforming the BSE500 over the last three years. High institutional holdings at 40.22% suggest that knowledgeable investors continue to support the stock, which could indicate confidence in its fundamentals despite the current price volatility. Overall, while the stock is facing short-term challenges, its strong historical performance and positive financial indicators may provide a foundation for recovery in the future.