Why is Shriram Finance falling/rising?

As of 12-Aug, Shriram Finance Ltd's stock price is currently at 611.90, reflecting a decrease of 6.8 points or 1.1%. The stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a downward trend. Additionally, there has been a decline in investor participation, with delivery volume falling by 2.92% compared to the 5-day average. Despite this short-term decline, the company has shown strong long-term fundamentals, with a consistent average Return on Equity (ROE) of 13.03% and healthy growth in net sales and operating profit. The stock has generated a modest return of 2.77% over the past year, while profits have increased by 12.4%, suggesting that the stock's current valuation may be fair despite its recent price drop.
In the broader market context, Shriram Finance's 1-week return of -2.98% significantly underperforms the Sensex, which has only declined by 0.59% in the same period. However, the stock has outperformed the benchmark over longer periods, such as a 3-year return of 123.72% compared to the Sensex's 34.93%. This indicates that while the stock is facing short-term challenges, its long-term performance remains strong, supported by high institutional holdings of 68.95% and consistent returns over the past three years. Overall, the recent price decline appears to be a reflection of short-term market dynamics rather than a fundamental weakness in the company's performance.