Why is Shriram Finance falling/rising?
As of 08-Aug, Shriram Finance Ltd's stock price is Rs 609.20, down 2.83%, reflecting a short-term weakness despite strong long-term fundamentals. The stock has underperformed its sector and is trading below key moving averages, with a notable decline in delivery volume.
As of 08-Aug, Shriram Finance Ltd is experiencing a decline in its stock price, currently at Rs 609.20, which reflects a decrease of Rs 17.75 or 2.83%. The stock has underperformed its sector by 2.12% today and has been on a consecutive downward trend for the last two days, accumulating a total decline of 3.42%. Additionally, the stock has touched an intraday low of Rs 608.1 and is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Despite a strong long-term fundamental strength indicated by a 13.03% average Return on Equity (ROE) and consistent positive results over the last seven quarters, the recent price movement suggests a short-term weakness, exacerbated by a 21.88% drop in delivery volume compared to the 5-day average.In the broader market context, Shriram Finance's short-term performance shows a decline of 0.82% over the past week, which is slightly better than the Sensex's drop of 0.92%. However, over the past month, Shriram Finance has fallen by 9.05%, significantly more than the Sensex's 4.60% decline. While the stock has demonstrated strong long-term growth with a 5.22% increase year-to-date and a remarkable 349.96% rise over the last five years, the current market sentiment appears to be negative, impacting its recent performance despite high institutional holdings and consistent returns in the longer term.
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