Buy Tata Steel for target of Rs 390: Sharmila Joshi

Sharmila Joshi of Peerless Securities told CNBC-TV18, "We saw Tata Steel bounce back ever since we heard that there could be some debt from Tata Steel which is getting retired. That would mean a big saving for Tata Steel if you think that about Rs 500 crore worth of interest rates is going to get saved. So I think that is a big positive that for Tata Steel that has come about in this last week."

"Also slowly the metal pack is beginning to improve largely because of the kind of data that you have had from China. The improved PMI data from China means that the metal stocks are beginning to rally globally. They are also benefiting from the way the dollar has moved. So all things combine brings me to think that metals looks like a good place to be in. I would give Tata Steel a target of about Rs 390 if one had about nine months to a year to stay invested," she added.
"The fact that nobody has metal stocks in their portfolio, so if you begin to see data improving, you could see people adding metals stocks which is in fact what we have seen in this last month to a month and a half and that could continue. So for me Tata steel remains a buy with a target of Rs 390 but of course I have a year's horizon."