Why is Indiamart Inter. falling/rising?

As of 16-Jul, Indiamart Intermesh Ltd is experiencing a decline in its stock price, currently at Rs 2,670.00, reflecting a decrease of Rs 37.05 or 1.37%. The stock has underperformed its sector by 1.84% today and has been on a downward trend for the last two days, with a total loss of 2.31% during this period. Despite this recent decline, the stock has shown positive performance over the past week and month, with returns of 2.73% and 7.01%, respectively. However, the stock's delivery volume has significantly decreased by 76.84% compared to its 5-day average, indicating falling investor participation. While the company has demonstrated strong management efficiency and healthy long-term growth, with positive results for the last eight consecutive quarters, it is facing challenges due to its high valuation and recent price movements.
In the broader market context, Indiamart's short-term performance contrasts with the benchmark Sensex, which has declined by 1.08% over the past week. Although the stock has outperformed the benchmark in the longer term, with an 18.71% year-to-date return compared to the Sensex's 5.75%, the recent consecutive falls and underperformance today suggest a shift in investor sentiment. The stock's high institutional holdings may provide some stability, but the combination of a very expensive valuation and declining delivery volumes could be contributing to the current downward pressure on the stock price.