Weekahead - Bracing for key election week

Reuters Market Eye - Investors are bracing for what is likely to be one of the most important weeks in share markets as India is set to unveil election results on May 16.

The Sensex and Nifty have hit a series of record highs in anticipation that Bharatiya Janata Party, which is seen as being more business friendly will win a majority, or coming close to it.

The Nifty has surged 17 percent since Sept. 13 - the day the BJP nominated Narendra Modi as its prime ministerial candidate, hitting its latest record on Friday.

Any results that show BJP falling short of a majority could cause shares to plunge 8 to 10 percent in one day, and up to 20 percent in the aftermath, according to analysts.

Before the actual results, trader will pay close attention to exit polls from media organisations, which will be allowed to be release them starting at 6:30 p.m. on Monday, the last day of voting.

Although exit polls have proven unreliable in the past, traders say they are likely to impact markets on Tuesday.

India is also set to release consumer price inflation data on Monday, the last one before the RBI's next policy review on June 3.

KEY EVENTS/FACTORS TO WATCH

Mon: Bank of Baroda , Bank of India results

April CPI (5:30 p.m.)

March industrial output (5:30 p.m.)

Media to publish exit poll results (6:30 p.m.)

Tues: Earnings: Punjab National Bank , Dr.Reddy's

Laboratories earnings

Wed: Earnings: Tech Mahindra , Tata Steel

April WPI (around 12:00 p.m.)

Thurs: NTPC , Bajaj Auto results

RBI board meeting in Shimla

Fri: United Spirits earnings

National election outcome throughout the day

(indulal.p@thomsonreuters.com/indulal.p.thomsonreuters.com@reuters.net)