Why is Shriram Finance falling/rising?
As of 28-Aug, Shriram Finance Ltd's stock price is Rs 571.85, down 4.05%, and has underperformed its sector and the broader market. Despite strong fundamentals, the stock has seen negative returns over the past year, contributing to a bearish trend.
As of 28-Aug, Shriram Finance Ltd is experiencing a decline in its stock price, currently at Rs 571.85, reflecting a decrease of Rs 24.15 or 4.05%. The stock has underperformed its sector by 2.98% today and has been on a consecutive downward trend for the last two days, resulting in an overall drop of 8.02% during this period. Additionally, the stock has shown negative returns over the past week and month, with declines of 7.74% and 9.67%, respectively. Despite strong long-term fundamentals, including a robust average Return on Equity (ROE) of 13.03% and significant growth in net sales and operating profit, the stock has generated a negative return of -10.71% over the past year, which may be influencing investor sentiment negatively.In the broader market context, Shriram Finance's recent performance contrasts with the benchmark Sensex, which has only declined by 2.34% over the past week and 1.00% over the past month. This indicates that the stock is underperforming relative to the overall market. The stock's liquidity appears sufficient for trading, with a notable increase in delivery volume, suggesting rising investor participation despite the price drop. High institutional holdings at 68.95% may provide some stability, but the stock's current trading below all major moving averages indicates a bearish trend, contributing to its recent price decline.
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