Why is Fineotex Chem falling/rising?

As of 03-Nov, Fineotex Chemical Ltd's stock is currently priced at 32.07, reflecting an increase of 2.27, or 7.62%. The stock has shown strong performance recently, with a notable 28.95% return over the last two days and a 26.23% increase over the past week, significantly outperforming the Sensex, which has declined by 0.94% during the same period. Despite opening lower today with a loss of 2.68%, the stock reached an intraday high of Rs 35.76, indicating high volatility with a wide trading range of Rs 7.91. However, the company has faced challenges, including negative results for the last three consecutive quarters, a decline in profits, and a decrease in institutional investor participation, which may weigh on investor sentiment despite the recent price rise.
In the broader market context, Fineotex Chemical Ltd's short-term performance has been impressive compared to the benchmark, as it has outperformed the Sensex over the past week and month. However, the stock's year-to-date performance remains negative at -3.18%, contrasting with the Sensex's positive return of 7.47%. This consistent underperformance over the last three years, coupled with a high valuation and declining profits, suggests that while there may be short-term gains, the long-term outlook could be concerning for investors, particularly in light of the company's recent financial struggles and falling institutional interest.