Exit polls suggest India heading for weak coalition…..

India could be heading for a weak coalition government on Thursday, with exit polls from the general election suggesting the ruling Congress-led coalition and its rivals would fall short of an outright majority. Three exit polls on Wednesday showed the ruling Congress-led coalition was slightly ahead of the opposition Hindu-nationalist alliance, but both groups were in need of smaller allies to gain a parliamentary majority. Official results will be released on Saturday. Such a scenario may leave little room for either group to manoeuvre on the economy, because a shaky coalition is seen as unlikely to push key reforms such as raising foreign investment limit in the insurance sector and privatisation. “But now that it is just a slender lead, the market may become uncomfortable and think there might be more of a mess in the offing.” After the last election in 2004, Indian markets tumbled on fears that an unstable coalition would soft-pedal on the next stage of reforms in Asia’s third-largest economy which striving to emerge as a major global player.