Why is Muthoot Finance falling/rising?

As of 19-Aug, Muthoot Finance Ltd's stock price is currently at 2,747.45, reflecting a decrease of 20.8 points or 0.75%. The stock has recently underperformed its sector by 0.72% and has experienced a trend reversal, falling after two consecutive days of gains. Despite this decline, Muthoot Finance has shown strong performance over various periods, with a 9.10% increase over the past week and a remarkable 49.27% return over the last year. The company has demonstrated solid fundamentals, including a high return on equity of 20.32% and consistent net profit growth of 65.12%, which has contributed to its strong buy rating. However, the stock is trading at a premium valuation, which may be a concern for some investors.
In the broader market context, Muthoot Finance's recent performance contrasts with the Sensex, which has only increased by 1.76% over the past week. While the stock has outperformed the benchmark significantly over the past year and three years, the current decline may reflect a temporary correction after a period of strong gains. Additionally, the falling investor participation, indicated by a 46.08% drop in delivery volume compared to the five-day average, could signal reduced confidence among retail investors, despite the high institutional holdings that typically provide stability. Overall, while the stock has strong long-term fundamentals, its recent price movement suggests a reaction to short-term market dynamics and investor sentiment.