Why is DCM Shriram falling/rising?

As of 04-Jul, DCM Shriram Ltd. is experiencing a decline in its stock price, currently at Rs 1,356.50, which reflects a decrease of Rs 66.75 or 4.69%. Today's price summary indicates that the stock has underperformed its sector by 4.5% and has fallen after two consecutive days of gains. The stock reached an intraday low of Rs 1,341.85, showing a significant drop of 5.72%. Despite this decline, the stock has demonstrated strong performance over the past year, generating a return of 34.69%, which is considerably higher than the market's return of 2.13%. Additionally, the company maintains a low Debt to EBITDA ratio of 0.65 times, indicating a strong ability to service its debt, which could support investor confidence despite the recent price drop.
In the broader market context, DCM Shriram's short-term performance has been notably strong, with a 14.36% increase over the past week, contrasting with a slight decline of 0.74% in the Sensex during the same period. However, the stock's current volatility, with an intraday fluctuation of 5.39%, suggests that investor sentiment may be cautious following today's downturn. While the stock is trading above its moving averages, the recent price action indicates a potential trend reversal, which could be influencing investor behavior. Overall, while DCM Shriram has shown impressive long-term returns, the recent price decline may reflect short-term market dynamics and profit-taking by investors.