By Sanjeev Miglani

NEW DELHI, May 16 (Reuters) - India announces on Saturday the results of an election which may leave the country run by a weak coalition at a time when it needs leadership to steer it through financial downturn and instability in Pakistan.

Prime Minister Manmohan Singh's ruling Congress-led coalition is locked in a close fight with the main opposition Hindu nationalist Bharatiya Janata Party, with neither expected to win a clear majority after a month-long vote.

A "Third Front" of regional and communist parties is expected to hold the balance of power, stoking concerns that big ticket reforms such as privatisation and liberalisation of the insurance sector will remain on the backburner.

"If it is a Congress coalition with the left backing it, you can forget about any major decisions on reforms," said political commentator Prem Shankar Jha. "It will be a weak coalition, a waste of time actually."

Counting of votes was to start at 0230 GMT with the results for the 545-member parliament due the same day. To rule, a party or a coalition requires the support of 272 members.

About 714 million people were eligible to vote in the largest such exercise in the world staggered over a month to allow security forces and election officials to supervise.

TV exit polls, which have had a mixed record in the past, showed the Congress-led coalition slightly ahead of the BJP but well short of a majority.

Analysts expect days of backroom dealings before a new government is in place and it may not even last its full five-year term.