Why is Nuvama Wealth falling/rising?

As of 30-Jun, Nuvama Wealth Management Ltd's stock price is currently at Rs 8,223.00, reflecting a decrease of Rs 75.0 or 0.9%. The stock recently hit a new 52-week and all-time high of Rs 8,510 but has since fallen after five consecutive days of gains. Despite this decline, the stock has shown strong performance over various periods, with a 65.90% return over the past year, significantly outperforming the broader market. However, it has underperformed its sector today by 1.42%. The company has demonstrated strong long-term fundamentals, with an average return on equity of 28.26% and impressive growth in net sales and operating profit. Nevertheless, the high valuation indicated by a price-to-book ratio of 8.5 and the fact that 62.8% of promoter shares are pledged may contribute to downward pressure on the stock price.
In the broader market context, Nuvama's short-term performance has been notably strong, with a 16.31% increase over the past week compared to a modest 2.09% gain in the Sensex. This indicates that while the stock is experiencing a temporary decline, it has been part of a broader upward trend in the market. The company's recent price movement may also be influenced by rising investor participation, as evidenced by a significant increase in delivery volume. However, the high level of pledged shares could pose risks, particularly in a falling market, potentially impacting investor sentiment and contributing to the stock's current decline.