While results won't be announced until May 23, investors are reading the tea leaves to see what may be on the horizon for trade issues and the regulation of foreign companies.
"If Modi is reelected, the market will have a broader assumption on what to expect. With Congress and regional parties, it's a whole lot less clear what the reform program will look like," Richard Rossow, Wadhwani Chair in U.S.-India policy studies at the Center for Strategic and International Studies, told CNBC.
Geopolitical consultancy Eurasia Group expects Prime Minister Narendra Modi and his Bharatiya Janata Party to win by forming a coalition. If the BJP does not win a majority in the Lok Sabha, the lower house of parliament, Modi would be limited in his ability to pass economic reforms crucial for the country's development as a global marketplace.
The coalition scenario could mean "less latitude to advance reforms," Eurasia analyst Akhil Bery said.