Why is Sonata Software falling/rising?

As of 24-Sep, Sonata Software Ltd. is experiencing a decline in its stock price, currently at Rs 375.60, reflecting a decrease of Rs 10.9 or 2.82%. The stock has been underperforming, having fallen consecutively for the last four days, resulting in a total decline of 6.26% during this period. Additionally, the stock's performance over the past week shows a decrease of 3.79%, while its year-to-date return is significantly negative at -37.50%. Despite strong long-term fundamentals, including a healthy average return on equity of 31.04% and a low debt-to-equity ratio, the stock's recent performance has been hampered by flat results in June 2025 and a decline in profits by 8.6% over the past year. Furthermore, the stock's valuation appears expensive with a price-to-book ratio of 6.2, contributing to investor concerns.
In the broader market context, Sonata Software's short-term performance has notably underperformed the benchmark, with the Sensex declining only 1.18% over the same week. This disparity highlights the stock's struggles relative to the overall market. The falling investor participation, evidenced by a 45.47% drop in delivery volume compared to the five-day average, further indicates a lack of confidence among investors. While the stock remains liquid enough for trading, the combination of poor recent performance, high institutional holdings, and disappointing financial results has led to a negative sentiment surrounding Sonata Software, contributing to its current price decline.