Why is Cummins India falling/rising?

As of 31-Jul, Cummins India Ltd. is experiencing a decline in its stock price, currently at 3,566.85, reflecting a decrease of 19.95 points or 0.56%. The stock opened lower today, with a gap down of 2.82%, reaching an intraday low of Rs 3,485.7. Despite this, the stock is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a generally positive trend over a longer period. The stock has shown a 1-week return of 0.30% and a 1-month return of 6.54%, outperforming the Sensex, which has declined by 1.22% and 3.00% respectively. However, the stock's performance over the past year has been negative, with a return of -7.42%. The company boasts strong long-term fundamentals, including a healthy average Return on Equity (ROE) of 20.76% and significant institutional holdings at 40.14%, which may support its price in the long run.
In the broader market context, Cummins India is performing better than the benchmark Sensex in the short term, as evidenced by its positive returns over the past week and month, while the Sensex has seen declines. However, the stock's valuation is considered very expensive, with a Price to Book Value of 13.1, which may deter some investors. Additionally, the company reported flat results in March 2025, and despite a profit increase of 16.2% over the past year, the stock's negative return indicates potential concerns about its valuation relative to its earnings growth, as reflected in a PEG ratio of 3.1. This combination of factors contributes to the current downward movement in the stock price.