Why is Cholaman.Inv.&Fn falling/rising?

As of 31-Jul, Cholamandalam Investment & Finance Company Ltd is experiencing a decline in its stock price, currently at Rs 1,439.00, which reflects a decrease of Rs 41.75 or 2.82%. The stock has been underperforming, having fallen for the last eight consecutive days, resulting in a total return of -8.58% during this period. Additionally, the stock's performance today has underperformed its sector by 2.28%, with an intraday low of Rs 1,427.55. Despite a strong long-term fundamental strength indicated by a healthy return on equity and consistent positive results over the last 11 quarters, the stock is facing pressure due to its high valuation relative to peers and a significant drop in investor participation, with delivery volume falling by 67.75% against the five-day average.
In the broader market context, Cholamandalam's short-term performance has been notably weaker than the benchmark Sensex, which has declined by only 1.22% over the past week compared to the stock's 7.45% drop. While the company has shown impressive long-term growth, with a year-to-date return of 21.28% compared to the Sensex's 3.90%, the recent price movements suggest that investors are reacting to the stock's high valuation and declining trading volume. The stock's premium valuation, combined with a PEG ratio of 1.2, indicates that investors may be cautious, leading to the recent downward trend despite the company's strong fundamentals.