Why is J&K Bank falling/rising?

As of 29-Aug, The Jammu & Kashmir Bank Ltd. is currently priced at 99.00, reflecting a decrease of 0.3, or 0.3%. The stock has been experiencing a downward trend, having lost value for the last eight consecutive days, resulting in a total decline of 6.65% during this period. Additionally, the stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish sentiment. Despite this, there has been a notable increase in investor participation, with delivery volume rising by 40.29% compared to the 5-day average. Over the past year, the stock has underperformed with a return of -11.29%, even as its net profits have increased by 15.9%, suggesting a disconnect between stock performance and underlying financial health. The company maintains strong provisioning practices and a healthy long-term growth trajectory, with a compound annual growth rate (CAGR) of 31.04% in net profits, which may support its valuation despite recent price declines.
In the broader market context, J&K Bank's short-term performance has been notably worse than the benchmark, with a 1-week return of -3.70% compared to the Sensex's decline of only -1.84%. This underperformance is further highlighted by a 1-month return of -6.78% against the Sensex's -1.88%. While the stock is trading at a discount relative to its peers and has a very attractive valuation with a Price to Book Value of 0.7, the recent price movements suggest that market sentiment is currently unfavorable. The majority shareholders being promoters may provide some stability, but the ongoing price decline indicates that investors are cautious, possibly due to the stock's recent performance and its inability to keep pace with the broader market trends.