VOA NEWS
Indian Prime Minister Narendra Modi’s alliance was headed for a narrow majority as vote-counting in the general election neared completion on Tuesday, with its tally well short of an expected landslide in a surprise setback for the populist leader.
Modi’s own Bharatiya Janata Party (BJP) was falling short of a majority of its own in the 543-member parliament, the trends showed. Having to depend on allies to form the government could introduce some uncertainty into policymaking after a decade in which Modi has ruled with an authoritative hold.
The Hindu nationalist BJP won a majority on its own when it won power in 2014, ending India’s era of unstable coalition governments, and repeated the feat in 2019.
The prospect of Modi having to rely on allies spooked markets, with stocks falling steeply. The blue-chip NIFTY 50 .NSEI sank 5.9% and the S&P BSE Sensex .BSESN tumbled 5.7%, posting their steepest decline on an election outcome day since 2004, when a BJP-led coalition lost power.
The rupee also fell sharply against the dollar and benchmark bond yields were up.
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