Why is Shriram Finance falling/rising?

As of 20-Aug, Shriram Finance Ltd is currently priced at 616.40, reflecting a decrease of 10.05 or 1.6%. The stock has been underperforming, having fallen consecutively for the last two days, resulting in a total decline of 1.65% during this period. It has also touched an intraday low of Rs 613.35, indicating a challenging trading environment. In terms of returns, the stock has underperformed against the benchmark Sensex, with a 1-week return of -0.58% compared to the Sensex's +1.64%, and a 1-month return of -4.48% against the Sensex's +0.12%. Despite these short-term challenges, the company has demonstrated strong long-term fundamentals, with a robust average Return on Equity (ROE) of 13.03% and consistent growth in net sales and operating profit.
Broader Market Context: The broader market context shows that while Shriram Finance has faced recent declines, it has still managed to generate a year-to-date return of +6.46%, outperforming the Sensex's +4.76%. However, the stock's recent performance has been overshadowed by its short-term underperformance relative to the benchmark, particularly in the last week and month. The high institutional holdings at 68.95% suggest that knowledgeable investors are backing the stock, which may provide some stability. Nevertheless, the current price movement and the stock's trading below its moving averages indicate a bearish sentiment in the short term, contrasting with its strong long-term growth potential.