Why is L&T Finance Ltd falling/rising?

As of 02-Jul, L&T Finance Ltd is currently priced at 206.15, reflecting a decrease of 1.7, or 0.82%. The stock has recently hit a new 52-week high of Rs. 209.6 but has experienced a trend reversal, falling after two consecutive days of gains. Despite this decline, the stock has shown strong performance over various periods, with a 1-month return of 17.73% and a year-to-date return of 52.03%. The stock is trading above all key moving averages, indicating a generally positive trend. However, there has been a notable drop in investor participation, with delivery volume falling by 54.74% compared to the 5-day average. Institutional investors have increased their stake, which may provide some support for the stock, but the current price movement suggests a cautious sentiment among retail investors.
In the broader market context, L&T Finance Ltd has outperformed the Sensex over the past week, with a return of 2.36% compared to the benchmark's 0.79%. This indicates that while the stock is experiencing a short-term decline, it has been performing well relative to the market in the recent past. The company's strong fundamentals, including a return on equity of 10.3 and consistent returns over the last three years, suggest that it remains a solid investment. However, the premium valuation compared to peers and the recent drop in trading volume may be contributing to the current price decline, reflecting a potential consolidation phase after a significant rally.