Narendra Modi is set to become the Indian PM with BJP party led NDA alliance getting close to 300 out of 543 seats in the Parliament. However Narendra Modi’s BJP suffered a setback with BJP singularly not getting a majority share of the seats and losing vote share compared to the previous term. This is a major twist and shows a stark contrast to the exit polls which predicted a decisive victory and majority formation for the BJP .

Modi is by far one of the most popular world leader but his popularity will be weakened by the close fight of the INDIA alliance which is a group of parties including the Indian National Congress which gave a tough fight to the BJP and NDA alliance.

The Indian shared markets bled on Tuesday with a single day fall of close to 6 percent for the National Stock Index (NSE) NIFTY which is the worst crash in 4 years and was not a technical glitch like the NYSE glitch on Monday.

The formation of coalition government could impact the stabilty in decision making , policy decisions and other reforms with the need of a support from other coalition parties to make reforms. This could impact overall macro economic scenarios and investors root for stable majority government. This was mainly the reason for the share market crash post election result trends were showing.

Narendra Modi himself won by 150K votes in Varanasi which is a very small margin compared to his landslide victory in the previous term . One of the major setbacks for the BJP government was at Ayodhya where the grand inauguration of the Ram Temple was completed just a few months ago before the elections. This was a major setback as construction of the Ayodhya Temple dedicated to Hindu God Ram was a major agenda of the BJP and a subject of a decade long dispute.BJP candidate Lallu Singh lost the Faizabad constituency in which the Ayodhya Temple falls.

Narendra Modi spoke from the BJP head quarters on Tuesday and remarked ” This is the first time that a government has come to power for the third time” and thanked the voters for their victory. India is the largest democracy in the world with elections held for over 40 days in 7 phases. This is the first time since the first election was held in India that the election was conducted for over a month in different phases.

Political analyts believe that on the gobal scale the US relation with Modi is likely to be stronger irrspective of the results and it is highly likely that Narendra Modi will be the Prime Minister of India for the record third consecutive time.