Realty stocks seem to be falling sharply: Ashwani Gujral

Ashwani Gujral, Chief Market Strategist, ashwanigujral.com in an interview with ET Now talks about real estate stocks.

What is the call on real estate stocks?

There are some companies where corporate governance is a bit better like Godrej Properties. If you have to be in property, corporate governance becomes key. So maybe buy in Mahindra Life or Godrej Properties if you must be in properties. DB, probably the stock has made a temporary type of bottom today.

Now that owner has been arrested, you will probably see Rs 100 being a bottom stock probably going up to 140-145. So if reality was at any point safe to buy, Unitech at 36, it is probably Rs 10 away from the lows of 2008. So these stocks are now very close to that 2008 bottoms. There is only Rs 25-30 to go out here now. So if you buy it here as a contrarian play, maybe at some point there is a regulator and transparency comes back and things turn.

So you buy them as an option and you keep your Rs 35-40 stops and hope for that kind of a time to come in realty but otherwise they seem to be falling quite sharply.