Modi faces popularity test with polls indicating tight contest in 5 states

A poor showing for the BJP when results are announced on Tuesday could make Modi look weaker, more vulnerable and reliant on regional parties to retain power in the 2019 federal poll

Narendra Modi is facing his one of his biggest challenges yet as India’s prime minister, with exit polls suggesting a tighter-than-expected contest in five state elections in results that will come out Tuesday immediately after his central bank governor resigned unexpectedly.

Both developments have thrown Indian financial markets into turmoil, threatening his ruling party’s momentum as he seeks re-election in the next six months. The rupee slumped 1.6 per cent in early trading in Mumbai, while yields on 10-year sovereign bonds jumped 12 basis points to 7.71 per cent. The S&P BSE Sensex gauge of stocks declined 1.1 per cent