Why is Nuvama Wealth falling/rising?

As of 08-Jul, Nuvama Wealth Management Ltd is experiencing a decline in its stock price, currently at 7,474.55, down by 26.25 points or 0.35%. The stock has underperformed its sector today by 0.3%, despite being above its 50-day, 100-day, and 200-day moving averages. Over the past week, the stock has decreased by 9.84%, while it has shown a modest increase of 1.44% over the last month. The company has demonstrated strong long-term fundamentals, with a return on equity of 28.26% and significant growth in net sales and operating profit. However, the high valuation indicated by a price-to-book ratio of 7.7 and the fact that 62.8% of promoter shares are pledged may be contributing to downward pressure on the stock price.
In the broader market context, the Sensex has remained relatively stable, showing a slight increase of 0.02% over the past week. While Nuvama Wealth's year-to-date performance is strong at 7.92%, it has lagged behind the benchmark's 1-month return of 1.85%. The stock's recent performance, particularly its significant drop over the past week, suggests that investor sentiment may be affected by the high level of pledged shares and the expensive valuation, despite the company's positive long-term growth indicators and consistent profitability.