Though the Conservatives emerged as the single largest party in the election for Britain's 650-seat parliament, the impressive show by the opposition Labour Party led by Jeremy Corbyn is seen as a humiliation for May to continue in her position.
According to British media, the results are a humiliation for May, who chose to call the election to try to strengthen her hand in talks with the European Union on pulling the UK out of the single market.
With a handful of seats yet to be declared, Conservatives won 314 and Labour secured 261, leaving neither party anywhere close to the 326 seats required for an overall majority.
Though May won her Maidenhead seat in south-east England with 37,780 votes, she faced pressure to resign after losing her parliamentary majority unexpectedly.
All pre-election opinion poll forecasts of May's strong lead with projections of a 50 to 70 seat majority have proved far-fetched with the Corbyn-led Labour doing far better than expected.
Earlier, Corbyn called on May "to go" but she said the country needed stability and her party would "ensure" it was maintained.
Conservative MP Anna Soubry has described the election results as "dreadful" and a "disaster", questioning whether Prime Minister May should remain as leader.
Labour looks set to make gains of 33 seats with the Tories losing 15 - and the Scottish National Party (SNP) down by 22 seats in a bad night for Scottish First Minister Nicola Sturgeon, with her party losing seats to the Tories, Labour and Liberal Democrats who have won 12 seats, up four from their last election tally.
"At this time, the country needs a period of stability. The Conservative party is on course to winning the most votes and it will be incumbent on us that we provide that period of stability," May said after she won her own seat in Maidenhead with 37,780 votes.
Conceding the exit poll predictions of a hung parliament and her dashed hopes of a landslide win, she added: "My resolve is the same that as it has been. Whatever the results, the Conservative party will remain the party of stability."
"Politics has changed and this is people saying they have had quite enough... I am very proud of the results that are coming in and the vote for hope. The Prime Minister called the election because she wanted a mandate and the mandate is that she has lost seats," he said, claiming on Twitter earlier that the Labour party had "changed the face of British politics".
The final result in the polls would mean that a deal will have to be done by any party who wants to form a government and the Conservatives will be given the first chance as the single largest party.
But there is also a chance the UK could go back to polls later this year under the Fixed Term Parliament Act, if two- thirds of MPs vote for it and lose confidence in a government that is not strong enough.
This time there is a bigger chance of a minority government, which means the governing party would be unable to pass laws and legislation without the votes of other parties that are not part of the government.
A minority Conservative government could probably rely on the votes of the 10 or more MPs of the Democratic Unionist Party (DUP) from Northern Ireland and a minority Labour-led government could rely on Welsh Plaid Cymru's three MPs, one Green MP and the SDLP's three.
The Lib Dems had also ruled out any coalition deals, having suffered in the previous Tory-led coalition of 2010.
In any scenario, any new government is unlikely to be very stable, increasing the prospect of another general election within months.
Any party wanting to form a government needs to see if it can assemble the votes it needs to get its programme of proposed new laws passed in the Queen's Speech which marks the opening of Parliament, scheduled for June 19.
Disclaimer: No Business Standard Journalist was involved in creation of this content
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