Why is Kinetic Engg. falling/rising?

As of 31-Jul, Kinetic Engineering Ltd's stock price is currently at Rs 320.95, reflecting a decrease of Rs 16.05 or 4.76%. The stock has underperformed its sector today by 3.83% and has experienced a consecutive decline over the last two days, totaling a drop of 6.63%. The stock touched an intraday low of Rs 320, indicating a significant downward movement. Despite a strong performance over the past year with a return of 66.73%, the company is facing challenges such as operating losses and weak long-term fundamental strength, which are contributing to the recent price decline. Additionally, there has been a notable decrease in delivery volume, falling by 33.63% against the 5-day average, suggesting reduced investor interest.
In the broader market context, Kinetic Engineering's short-term performance has been significantly worse than the benchmark, with a 1-week return of -8.80% compared to the Sensex's -1.22%. While the stock has shown impressive long-term returns, outperforming the BSE500 over the last three years, the recent negative operating profits and a decline in institutional investor participation—down 0.97%—indicate a lack of confidence among more knowledgeable investors. This combination of factors is likely contributing to the stock's current downward trajectory.