Indian Prime Minister Narendra Modi's election shortfall leaves Wall Street scrambling

• Indian Prime Minister Narendra Modi's failure to secure a supermajority for his party has investors racing to understand the impact on India's economic landscape.
• The Indian stocks market sold off on Monday following the surprising election results – its biggest plunge since 2021. 
• GE Aerospace, Apple, Starbucks and Nvidia have all made high-profile deals to expand, manufacture or sell their products in India.

A stunning political setback for Indian Prime Minister Narendra Modi has business executives in the country furiously making calls, trying to better understand the impact on India's economy and investment landscape following Modi's failure to secure a supermajority for his party.

"Indian voters are great teachers. They have certainly surprised the politicians, exit pollsters and market watchers," wrote Venugopal Garre, managing director at AB Bernstein, to clients in an email.

Over the past several years, chief executives from some of the biggest companies in the United States have invested time and money into relationships with Modi, as they set their sights on the Indian market.

GE Aerospace, Apple, Starbucks and Nvidia are among the companies that have made high-profile deals to expand, manufacture and sell their products inside the country.

"As China slows down, India has been the go-to destination for U.S. tech juggernauts," Pramit Chaudhuri, head of Eurasia's South Asia practice, said Tuesday to CNBC.

The Indian stocks market sold off on Monday following the surprising election results – staging its biggest plunge since 2021. 

The outcome is "a clear negative that is likely to create an overhang on the market over the near term," said Rahul Sharma, an emerging markets portfolio manager at Shafer Cullen, an