Why is Coromandel Inter falling/rising?

As of 01-Aug, Coromandel International Ltd's stock price is currently at Rs 2,596.25, reflecting a decline of Rs 89.75 or 3.34%. The stock has underperformed its sector today by 1.2% and has experienced a trend reversal after three consecutive days of gains, touching an intraday low of Rs 2,578.3, which is a decrease of 4.01%. Despite a strong long-term performance, with a year-to-date return of 38.10% and a one-year return of 59.11%, the stock's recent movement is affected by a significant drop in investor participation, with delivery volume falling by 48.82% against the five-day average. Additionally, the fertilizer sector has seen a decline of 2.38%, contributing to the stock's downward pressure.
In the broader market context, Coromandel International's recent performance contrasts with the Sensex, which has declined by 1.06% over the past week. While the stock has outperformed the benchmark in the long term, its short-term struggles are evident as it faces a challenging sector environment and reduced trading activity. The company's strong fundamentals, including a healthy return on equity and low debt-to-equity ratio, provide a solid foundation for long-term growth; however, the current high valuation and premium compared to peers may be causing some investor caution, leading to the recent price decline.