Why is Pondy Oxides falling/rising?

As of 23-Sep, Pondy Oxides & Chemicals Ltd is experiencing a decline in its stock price, currently at Rs 1,289.15, which reflects a decrease of Rs 23.55 or 1.79%. The stock has underperformed its sector by 1.55% today and has been on a downward trend for the last two days, accumulating a total decline of 3.08%. Despite a strong performance over the past month with a return of 17.68% and a year-to-date increase of 50.78%, the recent price movement indicates a shift in investor sentiment. The stock's liquidity remains adequate, but there has been a notable decrease in delivery volume, which fell by 15% compared to the five-day average. Additionally, while the stock is trading above its longer-term moving averages, it is below its five-day moving average, suggesting a short-term weakness.
In the broader market context, Pondy Oxides has outperformed the Sensex over various periods, including a 26.51% return over the past year compared to the Sensex's decline of 3.33%. However, the stock's recent performance contrasts with this longer-term success, as it has underperformed the benchmark in the short term. The company's strong fundamentals, such as a low Debt to EBITDA ratio and consistent growth in operating profit, support its long-term potential. Nevertheless, the stock's high valuation relative to peers and a PEG ratio of 1.5 may be contributing to the current selling pressure, as investors reassess the stock's price in light of its recent performance and market conditions.