JP Morgan has upgraded Hindalco Industries and Vedanta to an overweight rating, citing the potential for elevated aluminum prices due to the escalating conflict in West Asia. This upgrade has positively impacted the stock market, with Hindalco shares climbing 4% to ₹964.75 and Vedanta shares rising 3% to ₹708.85 on the Bombay Stock Exchange (BSE). The brokerage raised its price target for Hindalco to ₹1,125, indicating a 20% upside, and for Vedanta to ₹850, representing a 22% potential gain. JP Morgan's analysis highlights that the ongoing Middle East conflict, combined with recent smelter outages, is likely to sustain high aluminum prices, with forecasts adjusted for FY27/28 to $3,250/$3,150 per tonne from a previous estimate of $2,850. The current stock prices suggest that both companies are undervalued relative to the spot price of aluminum, which is around $3,540. The brokerage expects substantial earnings growth from both companies due to favorable market conditions and currency depreciation, which should alleviate debt concerns. Moreover, Hindalco's aluminum rolling subsidiary, Novelis, is projected to improve earnings as operations resume at its facilities, while the copper segment is also expected to benefit from rising byproduct prices.