Why is Multi Comm. Exc. falling/rising?

As of 02-Jul, Multi Commodity Exchange of India Ltd is experiencing a decline in its stock price, currently at Rs 8,945.00, which reflects a decrease of Rs 115.65 or 1.28%. Despite this drop, the stock has shown strong performance over the past week, with a return of 3.23%, and a remarkable increase of 33.41% over the past month. The stock is also close to its 52-week high, just 1.84% away from Rs 9,110. The recent price movement follows a trend reversal after five consecutive days of gains. Additionally, the stock is trading above its moving averages, and there has been a notable increase in investor participation, with delivery volume rising by 8.92% against the five-day average. The company has demonstrated strong long-term fundamentals, with a return on equity of 14.36% and significant growth in net sales and operating profit.
In the broader market context, while Multi Commodity Exchange of India Ltd has outperformed the benchmark Sensex in both the short and long term, the recent decline contrasts with its overall strong performance, including a year-to-date return of 43.37% compared to the Sensex's 6.75%. The stock's high institutional holdings at 79.91% indicate confidence among sophisticated investors, but its expensive valuation, with a price-to-book ratio of 24.2, raises concerns. Despite the stock's impressive historical returns, the recent price drop may reflect profit-taking or market corrections following its substantial gains.