Why is HDFC AMC falling/rising?

As of 26-Aug, HDFC Asset Management Company Ltd's stock price is currently at Rs 5,744.20, reflecting a decrease of Rs 140.8 or 2.39%. The stock has underperformed its sector by 0.44% today and has experienced a trend reversal, falling after three consecutive days of gains. It is currently 3.16% away from its 52-week high of Rs 5,925.5. Despite a strong long-term fundamental strength indicated by an average Return on Equity (ROE) of 28.86% and healthy growth in operating profit, the stock's recent decline may be attributed to its very expensive valuation, with a Price to Book Value of 15.1, and a PEG ratio of 1.9, suggesting that while it has performed well over the past year, the stock may be perceived as overvalued relative to its earnings growth.
In the broader market context, HDFC AMC's short-term performance shows a 0.39% increase over the past week, while the benchmark Sensex has decreased by 1.05%. This indicates that HDFC AMC has outperformed the benchmark in the short term. However, the finance/NBFC sector overall has fallen by 2.01%, which may also be influencing HDFC AMC's stock price. The stock has shown consistent returns over the last three years, outperforming the BSE500 in each of the last three annual periods, but the recent price movement suggests that investor sentiment may be cautious due to its high valuation despite strong fundamentals.