Why is Karnataka Bank falling/rising?

As of 29-Aug, Karnataka Bank Ltd's stock price is currently at 172.00, reflecting an increase of 1.75, or 1.03%. Today's performance indicates a trend reversal, as the stock has gained after three consecutive days of decline. It has outperformed its sector by 1.26%, although its delivery volume has decreased by 10.76% compared to the five-day average, indicating falling investor participation. Over the past week, the stock has shown a slight decline of 0.03%, and it has underperformed the market significantly over the past year with a return of -24.54%. Despite this, the company maintains strong lending practices, a low Gross NPA ratio of 3.46%, and a healthy long-term growth rate in net profits of 20.80% CAGR, which supports its valuation.
In the broader market context, Karnataka Bank's recent performance contrasts with the Sensex, which has declined by 1.84% over the past week. The stock's negative return of -24.54% over the past year is notably worse than the broader market's decline of -5.40%. The company has faced challenges, including negative results for the last three consecutive quarters, which have contributed to its underperformance. However, the high institutional holdings of 32.66% suggest that more informed investors are still confident in the company's long-term potential, as evidenced by their increased stake. Overall, while the stock has shown a slight uptick today, the underlying fundamentals and recent performance indicate ongoing challenges.