Why is Persistent Sys falling/rising?

As of 31-Jul, Persistent Systems Ltd is currently priced at 5,159.90, reflecting a slight increase of 1.1 (0.02%). Despite this minor uptick, the stock has shown a negative performance trend, having opened down by 2.1% today and reaching an intraday low of Rs 5050.7. Over the past week, the stock has decreased by 0.29%, and it has significantly underperformed the benchmark Sensex, which has declined by 1.22% over the same period. The stock is trading below its moving averages across various time frames, indicating a bearish trend. Additionally, there has been a notable drop in investor participation, with delivery volume falling by 66.56% compared to the five-day average. While the company has demonstrated strong long-term fundamentals, including a healthy growth rate in net sales and operating profit, the stock's high valuation and premium compared to peers may be contributing to its recent struggles.
In the broader market context, Persistent Systems has faced challenges, particularly in the short term, as evidenced by its 14.53% decline over the past month, contrasting sharply with the Sensex's 3.00% drop. This disparity highlights the stock's relative weakness in a declining market. Although the company has maintained a strong return on equity and consistent performance over the last three years, the current market sentiment appears cautious, likely influenced by the stock's expensive valuation and declining investor interest. The high institutional holdings may provide some stability, but the overall market conditions and the stock's recent performance suggest a challenging environment for Persistent Systems.