Why is HDFC AMC falling/rising?

As of 04-Aug, HDFC Asset Management Company Ltd's stock price is rising, currently at 5,670.00, reflecting an increase of 55.0 (0.98%). The stock has recently hit a new 52-week high of Rs. 5725 and has shown a trend reversal after two consecutive days of decline. Over the past week, the stock has gained 1.86%, significantly outperforming the Sensex, which only increased by 0.16%. Despite underperforming its sector today by 0.64%, the stock's strong long-term fundamentals, including a robust average Return on Equity (ROE) of 28.86% and consistent positive results over the last ten quarters, contribute to its upward movement. Additionally, high institutional holdings at 38.63% indicate confidence from more knowledgeable investors, further supporting the stock's performance.
In the broader market context, HDFC AMC's performance over the past month shows a remarkable increase of 12.81%, contrasting sharply with the Sensex's decline of 2.89%. This strong performance is indicative of the company's resilience and investor confidence, especially given its consistent returns over the last three years, where it has outperformed the BSE500. However, it is important to note that the stock is considered very expensive with a Price to Book Value of 14.9, which may pose risks if the market adjusts valuations. Despite this, the stock's liquidity remains adequate for trading, suggesting that investor interest is still present, albeit with a noted decline in delivery volume recently.