Why is Shriram Finance falling/rising?

As of 01-Jul, Shriram Finance Ltd is currently priced at 696.60, reflecting a decrease of 9.6 points or 1.36%. Despite this decline, the stock has shown strong performance over the past week, with a return of 3.13%, and an impressive 20.31% year-to-date increase. However, today's performance indicates that it underperformed its sector by 1.22%. The stock is trading above its moving averages, but there has been a notable drop in investor participation, with delivery volume falling by 59.85% compared to the 5-day average. The company has demonstrated strong long-term fundamentals, with a consistent return on equity of 13.03% and significant growth in net sales and operating profit, which may support its valuation despite the recent price drop.
In the broader market context, Shriram Finance's recent performance can be compared to the Sensex, which has returned 2.00% over the past week and 7.11% year-to-date. This indicates that while the stock has outperformed the benchmark in the longer term, its short-term decline contrasts with the overall market trend. The high institutional holdings at 68.91% suggest that knowledgeable investors continue to support the stock, reflecting confidence in its long-term potential despite the current price movement.