Why is HFCL falling/rising?

As of 26-Jun, HFCL Ltd's stock price is currently at 87.51, reflecting a rise of 0.28 or 0.32%. The stock has shown a strong performance recently, gaining 10.26% over the past week and outperforming its sector by 0.53%. It has been on a consecutive gain streak for the last five days, with a significant increase in delivery volume, which rose by 81.67% against the five-day average. However, despite these short-term gains, the company has faced significant challenges, including a decline in net sales of 39.62% and negative results in the last two quarters, leading to a poor long-term growth outlook with an annual operating profit decline of 5.35% over the past five years. Additionally, the stock is trading at a discount compared to its peers, but the high percentage of pledged promoter shares (49.72%) adds downward pressure in a falling market.
In the broader market context, HFCL's recent short-term return of 10.26% over the past week significantly outpaces the Sensex's return of 2.94% during the same period. However, the stock's year-to-date performance remains concerning, with a decline of 22.52% compared to the Sensex's gain of 7.19%. This underperformance in the long term, coupled with the company's financial struggles, suggests that while there may be short-term gains, the overall outlook for HFCL remains negative, particularly given its substantial losses and the increasing proportion of pledged shares.