Why is L&T Finance Ltd falling/rising?

As of 22-Jul, L&T Finance Ltd's stock price is currently at Rs 209.10, reflecting a decrease of Rs 1.5 or 0.71%. The stock has recently underperformed its sector by 0.5% and has experienced a trend reversal after two consecutive days of gains. It touched an intraday low of Rs 205.3, indicating a decline of 2.52%. Despite this short-term drop, the stock has shown strong performance over the past week and month, with returns of 2.00% and 9.97%, respectively. Additionally, it is trading above its moving averages, and there has been a significant increase in investor participation, with delivery volume rising by 173.22% against the 5-day average. The stock has also demonstrated impressive long-term performance, with a year-to-date return of 54.20% and a one-year return of 20.03%.
In the broader market context, L&T Finance Ltd has outperformed the Sensex, which has seen a decline of 0.47% over the past week and 0.27% over the past month. The stock's strong institutional holdings at 20.3% suggest confidence from knowledgeable investors, which may provide some support against the recent price decline. However, the stock is trading at a premium compared to its peers, and while it has generated solid returns, its profit growth has been modest at 7.5%, leading to a higher PEG ratio of 2.8. This combination of factors indicates that while the stock has performed well in the long term, recent price movements may reflect a natural correction after a period of strong gains.