Why is Eicher Motors falling/rising?

As of 18-Aug, Eicher Motors Ltd is experiencing a price increase, currently at Rs 5,905.20, reflecting a rise of 145.2 points or 2.52%. The stock has recently reached a new 52-week high of Rs 6,024.35 and has shown a positive performance over the last three days, gaining 4.34%. In terms of returns, Eicher Motors has outperformed the Sensex over various periods, including a 22.70% increase over the past year compared to the Sensex's 1.04%. The company benefits from strong fundamentals, including low debt and significant institutional holdings, which contribute to its robust long-term growth prospects. However, there are concerns regarding its high valuation and flat results in June, which may temper investor enthusiasm.
In the broader market context, Eicher Motors has outperformed the Sensex in the short term, with a 3.96% increase over the past week compared to the Sensex's 0.83% rise. The automobile sector, particularly two and three-wheelers, has also shown positive momentum, gaining 4.76%. This sector-wide performance, combined with rising investor participation and liquidity, supports the stock's upward trajectory. Overall, while Eicher Motors has demonstrated strong performance and growth potential, the market's reaction to its valuation and recent results will be critical in sustaining this momentum.