Why is Sonata Software falling/rising?

As of 10-Nov, Sonata Software Ltd. is experiencing a price increase, currently at Rs 376.40, reflecting a rise of 8.25 or 2.24%. The stock has shown positive momentum, gaining 2.73% over the last two days and outperforming its sector by 0.85% today. It reached an intraday high of Rs 379, indicating strong short-term performance. However, despite this recent uptick, the stock has underperformed over the longer term, with a year-to-date decline of 37.37% and a one-year drop of 39.27%. The company maintains strong long-term fundamentals, with an average Return on Equity (ROE) of 31.04% and healthy net sales growth, but it also faces challenges such as a high Price to Book Value ratio and recent flat results.
In the broader market context, Sonata Software's short-term return of 1.22% over the past week contrasts with the Sensex, which has declined by 0.53% in the same period. This suggests that the stock is gaining traction relative to the overall market. However, it is important to note that the stock has significantly underperformed the market over the past year, where the BSE500 has generated positive returns of 3.81%. The high institutional holdings at 35.18% may provide some support, as these investors typically have the resources to analyze the company's fundamentals more effectively than retail investors.