Long term investors should trade aggressively: P Phani Shekhar

P Phani Shekhar, Fund Manager-PMS, Angel Broking, talks to ET Now on his stock recommendations.

What is it that you are recommending clients to do?

We had been recommending clients to selectively buy stocks on a bad day. Currently standing at around 4800 levels, one analyses the risk reward, it only gets better because the downside is limited to 3% to 4% at least from what we can see. We obviously cannot comment on events that might unfold but the upsides considering the fact that we are actually almost 20% below over historical median valuation is pretty interesting. You actually look at the consensus GDP for growth forecast they are down to 7.5% and that is actually lower by at least than our historical growth numbers. But having said even this 7.5% GDP growth is sufficient to deliver and earnings growth of 13% to 15% for the full year. First quarter we have already been better than that, second quarter we will be more or less in that range. Now the third and fourth quarter are the key to deciding where the market goes and it would take serious reversals in the third and fourth quarter to actually bring that number down from 13%-15% to 7%-10% for the market to justify the current valuations that we are trading in. On the balance it is more of a fear and fear cannot be forecasted, so I would say that longer term investors should take advantage of this and start nibbling in the markets more aggressively.