Why is T N Merc. Bank falling/rising?

As of 11-Aug, Tamilnad Mercantile Bank Ltd's stock price is currently at 429.15, reflecting a decline of 4.85, or 1.12%. The stock has underperformed its sector by 1.91% today and has experienced a trend reversal after three consecutive days of gains. It is trading below all key moving averages, indicating a bearish trend. Additionally, the delivery volume has significantly decreased, falling by 59.49% compared to the five-day average, suggesting reduced investor participation. Despite a high Capital Adequacy Ratio of 25.68% and a favorable valuation with a Price to Book Value of 0.7, the stock has generated a negative return of 4.78% over the past year, while profits have increased by 9.3%. However, the company's operating profit to net sales is at its lowest, and domestic mutual funds hold no stake, which may indicate a lack of confidence in the stock's current valuation.
In the broader market context, the stock has underperformed against the benchmark, with a one-week return of -1.93% compared to the Sensex's -0.51% and a one-month return of -3.37% versus the benchmark's -2.30%. This consistent underperformance over the last three years, coupled with flat results in the latest quarter, has likely contributed to investor hesitation. The lack of domestic mutual fund investment further underscores the cautious sentiment surrounding the stock, as these funds typically conduct thorough research before investing. Overall, the combination of negative performance metrics and investor sentiment has led to the stock's decline.