Why is T N Merc. Bank falling/rising?

As of 28-Aug, Tamilnad Mercantile Bank Ltd's stock price is currently at 423.65, reflecting a slight increase of 0.65 (0.15%). The stock has shown a trend reversal by gaining after two consecutive days of decline. However, it is still trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend overall. Despite a recent outperformance against its sector by 1.39%, the stock has underperformed significantly over the past week and month, with returns of -0.54% and -5.57%, respectively. The bank's high Capital Adequacy Ratio of 25.68% and attractive valuation metrics, such as a ROA of 1.8 and a PEG ratio of 0.6, suggest potential for growth. However, the stock's performance has been hindered by flat results in the latest quarter and a lack of investment from domestic mutual funds, which may indicate a lack of confidence in the company's prospects.
Broader market context reveals that while Tamilnad Mercantile Bank has experienced a decline of -9.52% over the past year, the benchmark Sensex has shown a slight decrease of only -2.08% during the same period. This underperformance against the benchmark, coupled with the stock's negative returns over various time frames, highlights the challenges the bank faces in gaining investor confidence. The broader market has also seen a decline, with the Sensex down -2.34% over the past week, suggesting that external market conditions may be contributing to the stock's struggles. Overall, while there are some positive indicators for Tamilnad Mercantile Bank, the combination of recent performance trends and broader market dynamics suggests a cautious outlook for the stock.