Why is Hind.Aeronautics falling/rising?

As of 18-Jul, Hindustan Aeronautics Ltd is experiencing a decline in its stock price, currently at Rs 4,652.55, which reflects a decrease of Rs 134.8 or 2.82%. The stock has been underperforming, having fallen consecutively for the last three days, resulting in a total decline of 4.96% during this period. Today's trading saw the stock touch an intraday low of Rs 4,645, and it has underperformed its sector by 0.48%. In terms of returns, the stock has shown a negative performance over the past week and month, with declines of 4.39% and 6.85%, respectively, while it has a year-to-date gain of 11.40%. Despite these recent challenges, the company maintains strong long-term fundamentals, including a healthy average Return on Equity (ROE) of 24.41% and a low Debt to Equity ratio, which supports its long-term growth potential.
In the broader market context, Hindustan Aeronautics Ltd's recent performance contrasts with the benchmark Sensex, which has only declined by 0.90% over the past week. The defense sector, in which the company operates, has also seen a downturn, falling by 2.35%. However, the stock's liquidity remains adequate, with a delivery volume increase of 4.25% compared to the five-day average, indicating rising investor participation. Despite the current price drop, the company's significant market capitalization and institutional holdings suggest that it has the potential for recovery, as institutional investors typically have a better grasp of the company's fundamentals compared to retail investors.