Why is Newgen Software falling/rising?

As of 28-Jul, Newgen Software Technologies Ltd is experiencing a price increase, currently at 858.40, reflecting a rise of 7.0 (0.82%). Today's price summary indicates that the stock has outperformed its sector by 2.04% and has gained after seven consecutive days of decline, reaching an intraday high of Rs 877.5. However, it is important to note that the stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Over the past week, the stock has seen a decline of 6.40%, and over the past month, it has fallen by 25.88%. Despite a high management efficiency indicated by a return on equity (ROE) of 19.71% and a low debt-to-equity ratio, the stock's valuation appears expensive with a price-to-book value of 8, which may deter some investors.
Broader Market Context: In the context of the broader market, Newgen Software has underperformed significantly, with a one-year return of -20.33% compared to the BSE500's decline of only -2.52%. This stark contrast highlights the stock's struggles despite a healthy long-term growth rate in operating profit of 29.93%. The recent increase in stock price may be attributed to a temporary trend reversal, but the overall sentiment remains cautious due to falling investor participation and the stock's expensive valuation relative to its peers.