Why is Natco Pharma falling/rising?

As of 24-Jul, Natco Pharma Ltd. is currently priced at 997.70, reflecting a decrease of 36.8 points or 3.56%. Today's price movement indicates a trend reversal, as the stock has fallen after two consecutive days of gains. It opened with a gain of 2.28% but reached an intraday low of Rs 994.25, showcasing volatility within the trading day. Over the past week, the stock has underperformed the sector by 3.68%, and its one-month return stands at +14.67%, contrasting with a year-to-date decline of -28.07%. Despite this recent downturn, the company exhibits strong fundamentals, including a high return on equity (ROE) of 15.57% and a low debt-to-equity ratio, which contribute to its healthy long-term growth potential. The stock is trading at a discount compared to its peers, with a price-to-book value of 2.3, indicating an attractive valuation despite its recent performance.
In the broader market context, Natco Pharma's short-term performance has been notably weaker than the benchmark Sensex, which has only declined by 0.09% over the past week. The stock's recent decline may be influenced by falling investor participation, as evidenced by a 5.88% drop in delivery volume compared to the five-day average. While the company has shown strong profit growth of 35.8% over the past year, the overall market sentiment appears to be affecting its stock price negatively. High institutional holdings at 21.33% suggest that knowledgeable investors are backing the company, yet the current market dynamics may be overshadowing these positive factors, leading to the stock's recent decline.