Rally in real estate may be result of opportunistic short-term trade: Prakash Diwan

In a chat with ET Now Prakash Diwan, Director, Altamount Capital Management shares his views on real estate stocks. Excerpts:

ET Now: Sure enough, people anticipated rate-sensitives to move, but not in the way something like real estate has done today and it has carried the housing finance companies too along with it. Has something materially changed for such excitement in real estate?

Prakash Diwan: I doubt it. Is the fact that interest rates have not gone up as yet so strong to create this kind of momentum? There possibly could also be a significant amount of short covering that has brought these stocks up and my sense is that generally, when everything seems to be falling in place, these are the counters that people look at, for a quick turnaround and spike that traders have got so used to seeing in market.

So I doubt if it is generally long-term money that is chasing these stocks. It is probably a more opportunistic short-term trade that have built in and you will probably see that happen every time there is a positive news flow that comes through.