Why is Nuvama Wealth falling/rising?

As of 26-Jun, Nuvama Wealth Management Ltd's stock price is rising, currently at 7,904.50, reflecting an increase of 404.95 or 5.4%. The stock has recently hit a new 52-week and all-time high of Rs 7945.95 and has outperformed its sector by 4.07%. Over the past four days, the stock has gained 14.53%, and its performance over the last week and month shows returns of 13.50% and 14.63%, respectively. The company has demonstrated strong long-term fundamentals, with a notable average Return on Equity (ROE) of 28.26% and consistent positive results over the last six quarters, contributing to its impressive one-year return of 60.81%, significantly higher than the market average.
In the broader market context, Nuvama's short-term performance has outpaced the benchmark Sensex, which has only increased by 2.94% over the past week. This strong performance is supported by rising investor participation, as evidenced by a 37.49% increase in delivery volume. However, the stock does face risks, including a high Price to Book Value ratio of 8.2 and the fact that 62.8% of promoter shares are pledged, which could exert downward pressure in a falling market. Despite these risks, the stock's liquidity remains healthy, allowing for substantial trading activity.