Hindalco, Vedanta, Nalco shares in focus today; here's why

Shares of Hindalco, Vedanta and Nalco are in focus today after aluminium prices in the global markets surged up to 6% on Monday in response to Iran's attacks on two key production sites in West Asia. Iran attacked Emirates Global Aluminium PJSC, the top producer of the metal in West Asia and Aluminium Bahrain in the weekend.

This attack could further threaten disrupt supply in a region that accounts for a significant part of the global output.

Aluminium prices rose up to 6% to $3,492 a tonne in early trading on the London Metal Exchange (LME). Shares of Aluminum companies in Australia also rose in early trading.

On Friday, Hindalco shares closed on a flat note at Rs 864 and Vedanta shares slipped 3% to Rs 649.55.

Nalco shares surged 0.97% to Rs 370.70 on Friday.

Emirates Global Aluminium PJSC said that it had sustained "significant damage" to its plant in Abu Dhabi, while state-run Aluminium Bahrain, or ALBA, said that it was assessing damage to its facility.

According to a report, around 9% of the global aluminium supply is sourced from West Asia. Blockage of the Strait of Hormuz has further worsened scenario for aluminium supply amid the ongoing war in West Asia.

Since the beginning of March, closure of the Strait has created an immediate aluminium supply shock, tightening Middle Eastern availability for Europe, the US and Asia and driving premiums sharply higher in Rotterdam, the Midwest and Japan.