Why is Shriram Finance falling/rising?

As of 01-Aug, Shriram Finance Ltd's stock price is currently at 614.25, reflecting a decline of 17.85 points or 2.82%. The stock has been underperforming, having lost 3.75% over the last three days and trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Additionally, the delivery volume has decreased by 19.43% compared to the 5-day average, indicating a drop in investor participation. Despite these short-term challenges, the company has demonstrated strong long-term fundamentals, with a consistent return on equity of 13.03% and healthy growth in net sales and operating profit. The stock has generated a modest return of 2.76% over the past year, while profits have increased by 12.4%, suggesting a fair valuation despite recent price declines.
In the broader market context, Shriram Finance's short-term performance has been relatively better than the benchmark, as it has only declined by 0.17% over the past week compared to the Sensex's decline of 1.06%. However, the stock's performance over the last month shows a more significant drop of 11.82%, while the Sensex has decreased by 3.70%. This indicates that while the stock is facing some headwinds, it has managed to outperform the broader market in the short term. The high institutional holdings at 68.95% may provide some stability, as these investors typically have better resources to analyze the company's fundamentals, which could support the stock in the long run despite its current downward trend.