Why is Natco Pharma falling/rising?

As of 31-Jul, Natco Pharma Ltd. is experiencing a decline in its stock price, currently at 953.70, which reflects a decrease of 21.65 points or 2.22%. The stock has underperformed its sector by 0.73% today and opened with a loss of 2.48%. It touched an intraday low of Rs 950, indicating a downward trend after two consecutive days of gains. Over the past week, the stock has decreased by 4.41%, while its performance over the past month shows a slight increase of 1.79%. Despite this, the stock has significantly underperformed on a year-to-date basis with a decline of 31.24%. Positive factors include high management efficiency with a return on equity (ROE) of 15.57%, a low debt-to-equity ratio, and healthy long-term growth in operating profit. However, the stock's recent movement is negatively impacted by falling investor participation, as evidenced by a 33.11% drop in delivery volume compared to the five-day average.
Broader market context indicates that Natco Pharma's short-term performance has been weaker than the benchmark, with the Sensex showing a decline of only 1.22% over the past week. While the stock has a positive long-term growth outlook and is trading at a discount compared to its peers, the recent price drop reflects broader market pressures and a lack of investor confidence, as indicated by the falling delivery volumes. The stock's year-to-date performance starkly contrasts with the Sensex's gain of 3.90%, highlighting the challenges Natco Pharma faces in regaining investor interest amidst a generally improving market backdrop.