Why is eClerx Services falling/rising?

As of 11-Aug, eClerx Services Ltd is currently priced at Rs 4,072.85, reflecting a decrease of Rs 32.0 or 0.78%. The stock has recently underperformed its sector by 0.59% and has been on a downward trend for the last two days, resulting in a total decline of 1.02%. Despite touching a new 52-week high of Rs 4,198 earlier in the day, the stock's performance over the past month shows a significant increase of 16.98%, while year-to-date returns stand at 16.61%. The company exhibits strong fundamentals, including a high return on equity (ROE) of 24.05% and a low debt-to-equity ratio, which may contribute positively to investor sentiment. However, a notable decline in delivery volume by 22.67% against the five-day average suggests a decrease in investor participation, which could be a factor in the recent price decline.
In the broader market context, eClerx Services has outperformed the benchmark Sensex over various periods, including a 63.69% return over the last year compared to the Sensex's 1.13%. While the stock has shown strong long-term performance, the recent short-term underperformance relative to the sector may indicate a temporary correction or profit-taking by investors following its recent highs. The stock's liquidity remains adequate for trading, but the falling investor participation could signal caution among traders. Overall, while the company has demonstrated consistent returns and strong institutional support, the recent price movement reflects a combination of profit-taking and reduced trading activity.