Why is IndusInd Bank falling/rising?

As of 18-Jul, IndusInd Bank Ltd. is experiencing a price increase, with its current price at 870.95, reflecting a change of 6.15 (0.71%) upward. The stock has shown a trend reversal, gaining after two consecutive days of decline. It has outperformed its sector by 1.89% today, and the delivery volume has risen significantly, indicating increased investor participation. However, despite a positive short-term performance, the stock has underperformed over the past year, with a return of -39.97%, while the benchmark Sensex has only declined by 0.90% in the same period. The bank's high profitability, indicated by a net interest margin of 7.04% and a capital adequacy ratio of 16.18%, suggests strong fundamentals, but the significant drop in profits by 70.5% over the past year raises concerns about its long-term growth potential.
In the broader market context, IndusInd Bank's short-term return of +1.43% over the past week contrasts sharply with the benchmark Sensex's decline of -0.90%, highlighting a relative strength in the stock's performance recently. However, the stock's long-term trajectory remains concerning, as it has consistently underperformed the market, with a notable annual decline compared to the BSE500's lesser drop of -0.36%. The high percentage of pledged promoter shares adds to the stock's vulnerability in a falling market, potentially exerting additional downward pressure. Overall, while there are positive indicators in the short term, the long-term outlook remains bleak due to declining profits and negative quarterly results.