Why is Pidilite Inds. falling/rising?

As of 31-Jul, Pidilite Industries Ltd is experiencing a decline in its stock price, currently at 2,862.55, which reflects a decrease of 15.85 or 0.55%. The stock has underperformed its sector by 2.38% today and has been on a consecutive downward trend for the last two days, resulting in a total decline of 1.14% during this period. Additionally, the stock's performance over the past week and month shows a decline of 1.52% and 6.07%, respectively, while it has underperformed the benchmark Sensex, which has seen a smaller decline of 1.22% and 3.00% in the same timeframes. The stock is currently trading below its moving averages across various timeframes, indicating a bearish trend. Despite high management efficiency and low debt levels, the stock's valuation appears expensive relative to its peers, contributing to investor caution.
In the broader market context, Pidilite Industries has consistently underperformed against the benchmark over the last three years, with a one-year return of -10.34% compared to the Sensex's slight decline of 0.68%. This underperformance, coupled with a high PEG ratio of 3.9, suggests that the stock may be overvalued despite a rise in profits. The falling investor participation, as indicated by a decrease in delivery volume, further reflects a lack of confidence among investors. Overall, the combination of recent price movements, valuation concerns, and consistent underperformance against the benchmark has led to a negative sentiment surrounding Pidilite Industries' stock.