Why is IIFL Capital falling/rising?

As of 12-Aug, IIFL Capital Services Ltd is experiencing a decline in its stock price, currently at 305.00, which reflects a decrease of 0.9 or 0.29%. The stock has underperformed in the short term, with a 1-week return of -3.82% and a 1-month return of -6.87%. Today's price summary indicates that while the stock outperformed its sector by 0.62%, it is trading lower than its 5-day, 20-day, and 50-day moving averages, although it remains above the 100-day and 200-day moving averages. Additionally, there has been a significant drop in investor participation, with delivery volume falling by 62.43% compared to the 5-day average. Despite these challenges, the company has strong long-term fundamentals, including a robust return on equity of 24.86% and healthy operating profit growth of 28.71% annually, which supports a fair valuation.
In the broader market context, IIFL Capital's recent performance contrasts with the benchmark, as the Sensex has only declined by 0.59% over the same 1-week period. While the stock has generated a notable return of 45.38% over the past year, its recent short-term performance has been lackluster, leading to a negative sentiment among investors. The high institutional holdings at 22.15% suggest that informed investors are backing the stock, but the falling delivery volumes indicate a potential lack of confidence among retail investors. Overall, while the long-term outlook remains positive due to strong fundamentals, the recent price movement reflects short-term challenges that are impacting investor sentiment.