Why is Karnataka Bank falling/rising?

As of 10-Jul, Karnataka Bank Ltd's stock price is currently at 191.25, reflecting a decrease of 0.5, or 0.26%. The stock has been experiencing a consecutive decline over the last two days, with a total drop of 1.14% during this period. In terms of performance against benchmarks, the stock has underperformed significantly, showing a 1-week return of -1.37% compared to the Sensex's -0.06%, and a 1-month return of -5.70% against the Sensex's +0.97%. While the bank has strong lending practices and a low Gross NPA ratio of 3.08%, its recent financial results have been disappointing, with a notable decline in profit before tax and net interest income, contributing to the stock's negative performance.
Broader market context indicates that Karnataka Bank has underperformed the market over the past year, generating a return of -12.51% while the broader market (BSE500) has seen a return of 1.46%. This stark contrast highlights the challenges the bank is facing, despite its strong long-term fundamentals and high institutional holdings, which typically provide a buffer against volatility. The stock's liquidity remains adequate, but the recent negative financial results and the overall market performance suggest that investor sentiment may be cautious, leading to the current downward price movement.