uranium stocks tommorrow

With Manmohans Singhs election victory in India, I could imagine that the outcome may have a positive effect on uranium stocks. As I believe the opposition party has not made things easy for him in his push to ramp up nuclear in his country. But with a clear and decisive victory, its pretty clear that the Indians want it.

Hopefully this victory will speed things up and prove to be the catalyst in what Dines would say the coming uranium buying panic.

We know how bullish he is on nuclear.

Here's a snippet

“The election result is extremely positive and very, very bullish,” Madhusudan Kela, head of equities at Mumbai-based Reliance Capital Asset Management, the nation’s largest money manager overseeing $18 billion of assets, said in an interview. “This will provide a government which is stable and has powers to take decisions.”

Be interested to see how this plays out in the uranium sector.


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India Stocks, Rupee, Bonds Surge on Congress Win; Exchange Halts
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By Pooja Thakur

May 18 (Bloomberg) -- India benchmark stock index posted a record gain, prompting exchanges to halt trading for the rest of the day, after Prime Minister Manmohan Singh’s election victory. The rupee jumped the most in two decades and bonds rose.

The Bombay Stock Exchange extended its suspension for the rest of the session for the first time ever, shortly after a two-hour halt ended at 11:55 a.m., according to the stock exchange Web site. The Sensitive Index, or Sensex, had surged 2,099.21, or 17 percent, to 14,272.63.

“Markets are euphoric,” said Rahul Chadha, the Hong Kong- based head of Indian equities at Mirae Asset Global Investment, with $46 billion in global equities. “The focus by federal and state governments on development will lead to a structural re- rating of India.”

Singh’s ruling Congress party won its most seats since 1991. The victory will enable the party to start forming a new government today without needing the support of communist lawmakers, who frustrated plans to entice foreign investment and sell state-owned companies in his first five-year term.

Under exchange rules, trading closed for the day at both exchanges because the Sensex jumped 2099.21 points while the S&P CNX Nifty index jumped 636.40 points. The Nifty climbed 17 percent to 4,308.05. The markets were halted for the first time ever after breaching an upper limit.

Rupee, Bonds

The rupee jumped 3.3 percent to 47.78 a dollar as of 12:30 p.m. in Mumbai, the biggest advance since March 1986. The yield on the most-traded 6.05 percent note due February 2019 dropped 17 basis points to 6.28 percent in Mumbai, according to the central bank’s trading system.

“The election result is extremely positive and very, very bullish,” Madhusudan Kela, head of equities at Mumbai-based Reliance Capital Asset Management, the nation’s largest money manager overseeing $18 billion of assets, said in an interview. “This will provide a government which is stable and has powers to take decisions.”

The election victory exceeded the most optimistic prediction in exit polls released by NDTV television channel after the five-week elections ended on May 13.

Stable Government

Kela predicted the rupee will gain as much as 15 percent by the end of next year and said stocks will rally after election tallies ensured a stable government.

The Bombay Stock Exchange Sensitive Index climbed 26 percent this year before today’s gain, trailing measures in Brazil, Russia and China, on concern the election wouldn’t produce an outright winner.

The nation’s benchmark stock index may surge as much as 20 percent over the next week as overseas investors purchase up to $3 billion of Indian shares within a month, said Singapore-based Samir Arora, who oversees Helios Capital Management Pte, an India focused hedge fund.

The stock market may draw overseas investments worth $10 billion this year as stimulus measures around the world increase trading, Kela said on May 16. Purchases of Indian equities by overseas investors last month exceeded sales by the most since October 2007 on waning risk aversion and on optimism India’s $85 billion stimulus plan will revive economic growth.

Banking, Autos

Domestic-driven industries such as banking and autos will perform well, Kela said, without naming any companies.

ICICI Bank Ltd., India’s second-largest, surged by a record 25 percent to 719.80 rupees, while Tata Motors Co., the nation’s biggest maker of trucks, added 15 percent to 305 rupees, the most in 16 years.

The Sensitive Index won’t fall to its March lows, and probably will find a new base at between 10,000 and 11,000, Kela said. The Sensex rose 2.5 percent on May 15 to 12,173.42.

“Bull markets are back, unless we see complete chaos in global markets,” Kela said. “India will outperform over the next one to three years.”

The rupee may appreciate 10 to 15 percent against the dollar over the next 12 to 18 months, Kela said. That’s more bullish than the median of 28 analysts in a Bloomberg survey for the rupee to end next year at 47 per dollar. The currency closed May 15 at 49.395 per dollar.

Asia’s third-biggest economy expanded 5.3 percent in the quarter through Dec. 31, the slowest pace since 2003, while factory output in March shrank the most in 16 years.

India will outperform other emerging markets as long as the government adopts a pro-growth, pro-reform stance, Chadha said.


To contact the reporters on this story: Pooja Thakur in Mumbai at [email protected]

Last Updated: May 18, 2009 03:11 EDT

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Cheers NK