Prime Minister Narendra Modi's political alliance won India's weeks-long general election yesterday, but his Hindu nationalist party lost its outright majority for the first time in a decade.

The outcome spooked investors, with stocks falling steeply as emerging results showed that Modi would, for the first time since sweeping to power in 2014, have to depend on at least three disparate regional parties whose political loyalties have wavered over the years.

This, analysts say, could introduce some uncertainty into policymaking after a decade in which Modi has ruled with an authoritative hold.

NDA, the alliance led by Indian Prime Minister Narendra Modi's Bharatiya Janata Party (BJP), secured a parliamentary majority at the country's general election, official results showed late yesterday.

With a few constituencies still left to declare, it had secured 272 seats, enough for a majority in the 543-seat parliament, results on the election commission website showed.

The BJP itself had won 224 seats and was leading in 16 more for a projected total of 240 -- by far the largest party but a significant drop from the 303 seats it won at the last polls in 2019.

The main opposition Congress party had won 88 seats and was leading in 11 for a projected total of 99, nearly double the 52 it secured five years ago.

The NDA coalition was on track to win at least 291 seats.

Modi's BJP won a majority on its own in 2014, ending India's era of unstable coalition governments, and repeated the feat in 2019.

Modi said people had placed their faith in the BJP-led coalition for a third time and it was historic, in his first comments since the counting of votes began.

"I bow to the people for this affection and assure them that we will continue the good work done in the last decade to keep fulfilling the aspirations of people," he posted on X.

Markets had soared on Monday after exit polls on June 1 projected Modi and BJP would register a big victory, and the ruling National Democratic Alliance (NDA) was seen getting a two-thirds majority and more.

"The NDA will form the government for the third time. PM Modi will be sworn in for the third time. Congress will sit in opposition for the third time," said BJP spokesperson Jaiveer Shergill.

"Introspection about the slide and the decrease in the seats will be done threadbare. We will put our ears to the ground," he said.

Modi, 73, who first swept to power in 2014 by promising growth and change, is seeking to be only the second prime minister after India's independence leader Jawaharlal Nehru to win three straight terms.

Two key regional allies in the NDA endorsed Modi as the next prime minister, rejecting local media speculation that they could be wavering in their support or possibly switch sides.

The Telugu Desam Party (TDP) and Janata Dal (United) said their pre-poll alliance with BJP was intact and they would form the next government.

The BJP's numbers were likely pulled down by the party's poor showing in the country's most populous state, Uttar Pradesh, which also sends 80 lawmakers to parliament. The party was leading in 33 seats in the state, down from the 62 it won in 2019, with analysts saying bread-and-butter issues had overshadowed the BJP's appeal to the Hindu majority.

In Maharashtra, the INDIA bloc won or was leading in 29 seats while NDA won or was leading in 18 seats. The state sends 48 lawmakers to the Lok Sabha.

Analysts also said a grand temple to the Hindu god Lord Ram that Modi inaugurated in January had not boosted the BJP's fortunes as it was expected to.

Celebrations had already begun at the headquarters of Modi's BJP before the full announcement of results.

But the mood at the Congress headquarters in New Delhi was also one of jubilation.

"BJP has failed to win a big majority on its own," Congress lawmaker Rajeev Shukla told reporters. "It's a moral defeat for them."

Congress leader Rahul Gandhi was also defiant.

"The country has unanimously and clearly stated, we do not want Narendra Modi and Amit Shah to be involved in the running of this country, we do not like the way they have run this country," Rahul Gandhi told reporters, referring to Modi's powerful number two, Home Minister Shah. "That is a huge message."

He said Congress would hold talks with its allies today and decide on the future course of action when asked if the opposition would try to form a government.

The result also worked as a shot in the arm for Congress after two humiliating defeats at the hands of Modi's BJP in the previous two elections.

Congress supporters credited its above-par performance to the "astute" leadership of Rahul Gandhi, the scion of the Nehru-Gandhi dynasty that played a dominant role in Indian politics for generations.

"Rahul has worked hard day and night. He deserves all the accolades. He has single-handedly lifted the party up," said Avneesh Jain, a party worker.

"At this rate, we will win the next election for sure."

The Congress poll performance showed it remained crucial for India's political opposition at the national level, said VS Chandrasekar, the former executive editor of the Press Trust of India news agency.

"The BJP government has ridden roughshod because of the weak opposition in the parliament," he told AFP.

"Now with more than 200 opposition members, there will be a strong restraint on the government."