Why is Muthoot Cap.Serv falling/rising?

As of 11-Jul, Muthoot Capital Services Ltd is experiencing a decline in its stock price, currently at Rs 344.80, which reflects a decrease of Rs 7.2 or 2.05%. Today's performance indicates that the stock has underperformed its sector by 1.13% and has reversed its trend after three consecutive days of gains. The stock reached an intraday low of Rs 343.1, and trading volume has been higher near this low price. Despite this decline, the stock has shown positive returns over the past week and month, outperforming the Sensex with gains of 8.77% and 10.34%, respectively. However, the stock's long-term fundamentals are weak, with a return on equity of 7 and declining profits, which may contribute to the current price movement.
In the broader market context, Muthoot Capital Services Ltd's recent performance contrasts with the benchmark, as it has outperformed the Sensex over the past week and month while the index has shown negative returns. Despite the stock's strong performance in the short term, its long-term growth prospects appear limited due to a decline in net sales and operating profit. Additionally, the lack of investment from domestic mutual funds may indicate a lack of confidence in the company's valuation or business model. Overall, while the stock has shown resilience in the short term, the underlying fundamentals and market sentiment suggest caution among investors.