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

As of 11-Sep, Cholamandalam Investment & Finance Company Ltd is experiencing a decline in its stock price, currently at Rs 1,494.40, which reflects a decrease of Rs 31.6 or 2.07%. Today's price summary indicates that the stock has underperformed its sector by 1.96% and has fallen after six consecutive days of gains, touching an intraday low of Rs 1,491. The stock's performance over the past week shows a gain of 2.24%, while its year-to-date return stands at a robust 25.94%. However, the stock is trading at a premium compared to its peers, with a high Price to Book Value of 5.3, which may contribute to investor caution. Despite strong fundamentals, including a consistent growth in net sales and operating profit, the recent decline may reflect concerns over its expensive valuation and falling investor participation, as evidenced by a 12.32% drop in delivery volume.
Broader market context shows that while Cholamandalam has outperformed the benchmark Sensex in the short term, with a 1-week return of 2.24% compared to the Sensex's 1.03%, the stock's recent downturn could be influenced by broader market sentiments or sector-specific challenges. The stock's long-term growth potential remains strong, supported by positive quarterly results and high institutional holdings at 44.02%. However, the combination of a recent trend reversal and high valuation may be causing some investors to reassess their positions, leading to the current price decline.