Indian Prime Minister Narendra Modi's Bharatiya Janata Party (BJP) has received a boost in a major state election, though political uncertainty over the outcome roiled financial markets.
The BJP has won the largest number of seats in an election in the southern Indian state of Karnataka, more than doubling the amount it held previously. The vote, which was held on May 12, is viewed as a key indicator ahead of 2019's general election.
The opposition Indian National Congress, led by Rahul Gandhi of the Gandhi political dynasty, lost its majority by a clear margin.
But, the BJP has only won 105 seats of the 224 total. This means that it lacks the 113 seat majority needed to govern. Congress has claimed 76 seats, and so backed a smaller competitor in the hope of securing governance through a coalition for another term.
The uncertainty has fueled major swings in Indian markets on Tuesday.
India's rupee plummeted to a near 16-month low against the U.S. dollar on Tuesday morning to hit 68.07 per dollar, according to Reuters. But, Indian central bank intervention is thought to have brought about a sharp recovery in the currency. In the longer term, the rupee has also been hit by rising oil prices, of which India is a major importer.