Why is HFCL falling/rising?

As of 08-Sep, HFCL Ltd's stock price is currently at Rs 70.97, reflecting an increase of Rs 1.13 or 1.62%. The stock has shown a trend reversal, gaining after two consecutive days of decline, and reached an intraday high of Rs 71.78. However, it remains 3.37% away from its 52-week low. Despite this uptick, the stock has underperformed significantly over the longer term, with a year-to-date decline of 37.17% and a one-year return of -53.57%. The company's financial health is concerning, as it has reported a substantial drop in profits by 90.9% over the past year, alongside a negative trend in net sales and operating profit. Additionally, over half of the promoter shares are pledged, which can exert downward pressure on the stock price in a declining market.
In the broader market context, HFCL's recent performance contrasts with the Sensex, which has gained 0.53% over the past week. The stock's short-term return of -0.55% over the last week indicates it is lagging behind the benchmark. While the stock is trading at a discount compared to its peers, the overall sentiment remains negative due to poor long-term growth prospects and consecutive quarters of negative results. The falling investor participation, evidenced by a significant drop in delivery volume, further suggests a lack of confidence among investors, contributing to the stock's volatility and recent price movements.