Why is Nuvama Wealth falling/rising?

As of 25-Jun, Nuvama Wealth Management Ltd's stock price is rising, currently at Rs 7,499.55, reflecting an increase of Rs 374.25 or 5.25%. The stock has been performing well, having outperformed its sector by 4.64% today and has gained consecutively for the last three days, resulting in an overall return of 8.67% during this period. Additionally, the stock is trading above its moving averages and is close to its 52-week high, just 3.94% away from Rs 7,795. The company has demonstrated strong long-term fundamentals, with a robust average Return on Equity (ROE) of 28.26% and significant growth in net sales and operating profit. However, there are concerns regarding its high valuation and the fact that 62.8% of promoter shares are pledged, which could pose risks in a declining market.
In the broader market context, Nuvama's short-term performance has significantly outpaced the benchmark, with a 1-week return of 3.12% compared to the Sensex's 1.61%, and a 1-month return of 9.48% against the Sensex's 1.27%. This indicates that Nuvama is not only performing well in isolation but is also gaining traction relative to the overall market. Despite a decline in investor participation, as evidenced by a 51.65% drop in delivery volume, the stock's liquidity remains adequate for trading. The strong performance over the past year, with a return of 50.06% compared to the market's 3.43%, further underscores Nuvama's favorable position in the current market environment.