Steel and metal stocks were buzzing in trade amid dovish commentary from the Federal Reserve and positive statements from ArcelorMittal.

The company raised its 2021 steel consumption forecast to 7.5-8.5 percent from 4.5-5.5 percent, sending out positive signals for the global ferrous space.

Traders have been waiting an official announcement on a possible export duty on steel exports that China talked about earlier this week.

According to JPMorgan, this will be positive for the Indian steel sector and it will be a structural reform going ahead. Now, the prices and profitability could get reset higher, and if that happens, the multiples could jump.

"If export tax of any sort comes on hot rolled coil (HRC), it's going to be positive for companies that export it, like JSW and Tata Steel. Therefore, we are positive on Tata Steel from that perspective." says Amit Dixit of Edelweiss Securities.

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(Edited by : Sandeep Singh)