Why is Nuvama Wealth falling/rising?

As of 10-Jul, Nuvama Wealth Management Ltd's stock price is currently at Rs 7,366.80, reflecting an increase of Rs 48.8 or 0.67%. The stock has shown a trend reversal, gaining after two consecutive days of decline, and it outperformed its sector by 0.54% today. Despite this positive movement, the stock has experienced a significant drop of 10.65% over the past week and a decline of 2.36% over the past month. The company has demonstrated strong long-term fundamentals, with a return on equity of 28.26% and impressive growth in net sales and operating profit. However, the stock is considered expensive with a price-to-book value of 7.6, and a concerning 62.8% of promoter shares are pledged, which could exert downward pressure in a falling market.
In the broader market context, while Nuvama's stock has generated a remarkable return of 52.14% over the past year, it has underperformed the benchmark, which has returned 6.46% year-to-date. The stock's recent performance contrasts sharply with the Sensex, which has seen a minimal decline of 0.06% over the past week. The falling investor participation, as indicated by a 64.03% drop in delivery volume compared to the five-day average, suggests a cautious sentiment among investors, which may be contributing to the stock's volatility despite its strong fundamentals.