Why is REC Ltd falling/rising?

As of 28-Aug, REC Ltd's stock price is currently at Rs. 354.90, reflecting a decline of Rs. 8.7 or 2.39%. The stock has hit a new 52-week low of Rs. 354.25 today and has been on a downward trend, having fallen for the last six consecutive days, resulting in a total decline of 7.2% during this period. In terms of performance against benchmarks, REC Ltd has underperformed its sector by 1.32% today and has shown significant negative returns over various periods, including a 29.10% drop year-to-date and a 42.63% decline over the past year. Despite these challenges, the company maintains strong long-term fundamentals, with a return on equity (ROE) of 19.72% and a high dividend yield of 5.25%, which could provide some support for the stock's valuation.
In the broader market context, REC Ltd's short-term performance has been notably worse than the Sensex, which has only declined by 2.34% over the past week. This stark contrast highlights the stock's struggles relative to the overall market. While the company has shown positive financial results, including a 15.4% increase in profits over the past year, the stock's performance has not reflected this growth, leading to a significant negative return. The high institutional holdings at 34.72% suggest that knowledgeable investors are backing the stock, yet the recent price movements indicate a lack of confidence among retail investors, contributing to the stock's downward trajectory.