Why is Nuvama Wealth falling/rising?

As of 23-Jul, Nuvama Wealth Management Ltd is currently priced at 7,729.05, reflecting a decrease of 35.95 points or 0.46%. Despite this decline, the stock has shown strong performance over the past week, with a return of 2.74%, and has outperformed the benchmark Sensex, which only gained 0.11%. The stock is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a generally positive trend. However, it underperformed its sector by 1% today. The company has demonstrated robust long-term growth, with net sales increasing at an annual rate of 34.40% and operating profit at 52.93%. Nevertheless, the high valuation indicated by a Price to Book Value of 8 and the fact that 62.8% of promoter shares are pledged may be contributing to the recent price decline.
In the broader market context, while Nuvama Wealth has generated a remarkable return of 58.25% over the past year, significantly outperforming the market's average return of 1.79%, the current price drop may reflect investor caution amid high valuations and pledged shares. The stock's recent performance, despite being strong in the long term, suggests that market participants may be reacting to these risks, particularly in a falling market where pledged shares can exert additional downward pressure on stock prices. Thus, while the company has solid fundamentals, the combination of high valuation and promoter share pledging could be influencing the stock's current downward movement.