Why is Nuvama Wealth falling/rising?

As of 02-Jul, Nuvama Wealth Management Ltd is experiencing a decline in its stock price, currently at Rs 8,073.50, which reflects a decrease of Rs 216.5 or 2.61%. Today's price summary indicates that the stock underperformed its sector by 1.38%, opening with a loss of 2.17% and reaching an intraday low of Rs 8,034.5, down 3.08%. Despite this recent downturn, the stock has shown strong performance over the past week, month, and year, with returns of 7.65%, 10.16%, and 59.74%, respectively. However, the stock's liquidity remains adequate for trading, although there has been a notable decline in delivery volume, which fell by 32.83% against the 5-day average. The company's strong long-term fundamentals, including a high return on equity and consistent profit growth, suggest potential for recovery, but the high valuation and significant promoter share pledges pose risks that may be contributing to the current price decline.
In the broader market context, Nuvama's short-term performance has outpaced the benchmark Sensex, which has only increased by 0.79% over the past week. However, the stock's recent underperformance today and the falling investor participation may indicate a shift in market sentiment, particularly in light of the high percentage of pledged promoter shares, which can exert additional downward pressure in volatile market conditions. While the company has demonstrated strong growth and positive results over the past quarters, the combination of high valuation and risks associated with pledged shares may be influencing investor confidence and contributing to the stock's current decline.