Why is Nuvama Wealth falling/rising?

As of 14-Jul, Nuvama Wealth Management Ltd's stock price is rising, currently at Rs 7,420.60, reflecting an increase of 94.1 points or 1.28%. The stock has shown a strong performance today, outperforming its sector by 1.2% and reaching an intraday high of Rs 7,507.45, which is a 2.47% increase. Over the past month, the stock has gained 4.50%, and year-to-date, it has risen by 7.14%, significantly outperforming the benchmark Sensex, which has only increased by 5.27% during the same period. However, there are concerns regarding falling investor participation, as the delivery volume has decreased by 84.19% compared to the 5-day average. Despite this, the company has demonstrated strong long-term fundamentals, with a robust return on equity of 28.26% and consistent positive results over the last six quarters, contributing to its recent upward movement.
In the broader market context, Nuvama's short-term performance of -1.07% over the past week contrasts with the Sensex's decline of 1.42%, indicating that while the stock has faced some short-term challenges, it has maintained a stronger position relative to the market. The stock's impressive one-year return of 54.60% far exceeds the market's 2.15% increase, showcasing its market-beating performance. However, the high valuation indicated by a Price to Book Value of 7.7 and the fact that 62.8% of promoter shares are pledged could pose risks, particularly in a declining market, which may exert downward pressure on the stock price.