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Indian Prime Minister Narendra Modi looked set to retain power, but his party lost its outright majority for the first time in 10 years as voters defied predictions of another landslide. Investors were unnerved by the outcome as it means Modi will depend on support from regional parties for the first time. Indian ETFs fell sharply as results showed Modi would not have a clear majority and policymaking could face more uncertainty. ETFs provide foreign investors easier access to Indian markets than direct stock investments. Investors had expected another Modi term to continue pro-business reforms and strong economic growth.
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