Why is Dr Reddy's Labs falling/rising?

As of 06-Aug, Dr Reddy's Laboratories Ltd is experiencing a decline in its stock price, currently at 1,197.10, which reflects a decrease of 16.75 or 1.38%. The stock has been underperforming recently, having fallen consecutively for the last two days with a total return of -2.31%. It is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend. Additionally, the stock has underperformed the benchmark Sensex over various periods, including a -12.03% return over the past year compared to the Sensex's 2.48% gain. Despite its strong long-term fundamentals, such as low debt and healthy growth in net sales and operating profit, the stock's recent performance has been negatively impacted by flat results in June and a low return on capital employed.
Broader market context shows that the pharmaceuticals and drugs sector has also faced a decline, with a drop of 2.06%. In the short term, Dr Reddy's stock has underperformed the benchmark, with a 1-week return of -7.32% compared to the Sensex's -1.15%. The falling investor participation, as evidenced by a significant drop in delivery volume, further exacerbates the stock's challenges. While the company has high institutional holdings and a fair valuation compared to peers, the recent negative trends in both the stock's performance and the broader market context contribute to its current downward movement.