Why is Kirloskar Oil falling/rising?

As of 11-Jul, Kirloskar Oil Engines Ltd is experiencing a decline in its stock price, currently at Rs 916.80, which reflects a decrease of 2.75 or 0.3%. The stock has underperformed its sector by 0.79% today and has seen a trend reversal after two consecutive days of gains. Intraday, the stock reached a high of Rs 966.8 but fell to a low of Rs 895.6, indicating volatility. Over the past week, the stock has shown a positive return of 6.92%, while its year-to-date performance remains negative at -10.56%. Despite the recent downturn, the company has demonstrated healthy long-term growth with an annual operating profit increase of 38.05%. The stock is trading at a discount compared to its peers, and high institutional holdings at 35.72% suggest confidence among more knowledgeable investors.
In the broader market context, the Sensex has experienced a slight decline of 1.12% over the past week, contrasting with Kirloskar Oil's positive short-term return. However, the stock's year-over-year performance is significantly worse than the benchmark, with a drop of 32.02% compared to the Sensex's gain of 3.26%. This disparity highlights the challenges faced by Kirloskar Oil despite its strong fundamentals, such as a return on capital employed (ROCE) of 14.2 and a favorable enterprise value to capital employed ratio of 2.4. The stock's liquidity remains adequate for trading, but the recent price drop may reflect broader market sentiments or profit-taking after recent gains.