Why is JM Financial falling/rising?

As of 16-Jul, JM Financial Ltd's stock price is currently at Rs 170.60, reflecting a slight increase of 0.15 (0.09%). The stock has shown strong performance over the past month, with a return of 19.13%, significantly outperforming the Sensex, which has only increased by 1.02%. Additionally, JM Financial is trading above its moving averages across various time frames, indicating a positive trend. However, there is a noted decline in investor participation, with delivery volume falling by 22.88% compared to the 5-day average. Despite this, the stock has a high institutional holding of 24.55%, suggesting confidence from larger investors. The stock's return of 71.22% over the past year is impressive, although it is important to note that profits have decreased by 34.7%, which may raise concerns about sustainability.
In the broader market context, JM Financial's recent performance contrasts sharply with the Sensex, which has declined by 1.08% over the past week. This indicates that JM Financial is not only performing well in the short term but also has a strong long-term track record, outperforming the BSE500 over various periods. The stock's premium valuation compared to peers, alongside its fair return on equity of 8.4, suggests that while it may be overvalued, the market is still willing to support its price due to its historical performance and institutional backing. Overall, the combination of strong returns, institutional confidence, and a favorable trading position contributes to the stock's rising price, despite some underlying concerns regarding profit declines.