Why is Purple Finance falling/rising?

As of 26-Jun, Purple Finance Ltd's stock price is currently at Rs 41.12, reflecting a decline of Rs 1.06 or 2.51%. The stock has been on a downward trend, having underperformed its sector by 3.84% today and experiencing consecutive losses over the last five days, resulting in a total decline of 6.61% during this period. The stock has also been trading below its moving averages across various time frames, indicating a bearish sentiment. Despite some positive results in net sales and quarterly performance, the company is facing significant challenges, including operating losses and a negative EBITDA, which contribute to its weak long-term fundamental strength and poor growth outlook.
In the broader market context, Purple Finance's performance has been notably weaker compared to the benchmark Sensex, which has gained 2.94% over the past week. The stock's year-to-date decline of 39.01% and a staggering 61.57% drop over the past year further highlight its struggles, especially in contrast to the Sensex's 7.19% increase during the same period. This stark underperformance against the benchmark suggests that investor sentiment is cautious, likely driven by the company's ongoing operational challenges and negative profitability trends.