Why is L&T Finance Ltd falling/rising?

As of 31-Jul, L&T Finance Ltd is currently priced at 202.50, reflecting a decrease of 0.55, or 0.27%. The stock has been experiencing a downward trend, having fallen for the last two days with a total decline of 1.7%. Despite this recent drop, the stock has outperformed its sector by 0.27% today. Over the past week, L&T Finance has seen a return of -3.57%, while its performance over the last month shows a decline of 2.57%. However, it has demonstrated strong long-term performance, with a year-to-date return of 49.34% and a 12.50% increase over the past year. The stock is trading at a premium compared to its peers, with a fair valuation indicated by a price-to-book ratio of 2, and high institutional holdings at 20.3% suggest confidence from larger investors.
In the broader market context, L&T Finance's recent performance contrasts with the Sensex, which has seen a decline of 1.22% over the past week and 3.00% over the past month. This indicates that while the stock is currently facing short-term challenges, it has outperformed the benchmark in the long term, particularly over the past three years, where it achieved a return of 169.82% compared to the Sensex's 41.02%. The stock's liquidity remains adequate for trading, although there has been a notable decrease in delivery volume, which may reflect a decline in investor participation. Overall, while the stock is experiencing a short-term decline, its strong long-term performance and institutional backing suggest a more favorable outlook in the future.