Why is Karnataka Bank falling/rising?

As of 01-Jul, Karnataka Bank Ltd's stock price is currently at 196.85, reflecting an increase of 1.1 (0.56%). The stock has shown a trend reversal by gaining after two consecutive days of decline, and it has outperformed its sector by 0.5% today. Despite this positive movement, the stock has underperformed in the short term, with a 1-week return of -4.40% and a 1-month return of -0.58%. The company benefits from strong lending practices, a low Gross NPA ratio of 3.08%, and a solid long-term growth trajectory with a 24.13% CAGR in net profits. However, it has faced challenges, including a significant drop in profit before tax and net income in the most recent quarter, contributing to its negative performance over the past year.
In the broader market context, while Karnataka Bank has experienced a decline of -11.98% over the past year, the benchmark Sensex has risen by 5.31% during the same period. This stark contrast highlights the stock's underperformance relative to the market. The recent increase in investor participation, evidenced by a 925.97% rise in delivery volume, suggests a potential shift in sentiment, although the stock remains below several key moving averages. High institutional holdings at 31.04% indicate that knowledgeable investors are still backing the company, which may provide some support for its price movement despite the recent negative results.