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

As of 06-Aug, Cholamandalam Investment & Finance Company Ltd is experiencing a decline in its stock price, currently at Rs 1,452.80, which reflects a decrease of Rs 19.1 or 1.3%. Today's price summary indicates that the stock has underperformed its sector by 1.04% and has fallen after two consecutive days of gains. The stock reached an intraday low of Rs 1,438.85, marking a 2.25% drop. Over the past week, the stock has decreased by 1.89%, and over the last month, it has fallen by 4.82%. Despite these short-term declines, the company has demonstrated strong long-term fundamentals, with an average return on equity of 17.64% and consistent positive results over the last 11 quarters, contributing to a healthy growth trajectory in net sales and operating profit.
In the broader market context, Cholamandalam's recent performance has been weaker compared to the benchmark Sensex, which has declined by 1.15% over the same week. The stock's falling investor participation, evidenced by a significant drop in delivery volume, suggests a decrease in market interest, which may be contributing to the current price decline. However, the company maintains high institutional holdings at 44.02%, indicating confidence from larger investors who typically have more resources to analyze the company's fundamentals. This institutional backing, combined with strong long-term growth metrics, suggests that while the stock is currently facing downward pressure, its fundamental strength may support a recovery in the future.