Global events, state election results key for markets next week

Reuters Market Eye - Higher volatility is expected next week as financial markets will be on alert following two key state election results on Sunday, company earnings and global events.

It will be a truncated week for the markets as they are shut Thursday and Friday for national holidays.

Results of the Maharastra and Harayana elections are due Sunday. A win for the Bharatiya Janata Party will be seen as positive for reforms at the centre.

Key earnings in the week - HDFC, Mahindra and Mahindra and Wipro.

Signs of worsening growth in euro zone, Ebola's spread and rise of unrest in the Middle East to hurt sentiment.

Movements in Brent crude , which is at a four-year low, will be watched closely.

Foreign fund flows will determine sentiment for debt and forex markets.

10-year benchmark bond seen in 8.35-8.45 range; rupee may trade between 61.25 and 61.95, say traders.

KEY FACTORS/EVENTS TO WATCH

Thurs - Fri: Markets closed

Tues: Earnings - South Indian Bank , HDFC Bank , Biocon , Punjab National Bank and Cairn India

Wed: Mahindra & Mahindra , Housing Development and Finance Corp , Kotak Mahindra Bank and Wipro

Fri: India's foreign exchange reserves

(Reporting by Indulal PM; Editing by Biju Dwarakanath)