CNBC's Inside India newsletter: Modi's loss could be India's gain

This report is from this week's CNBC's"Inside India" newsletter which brings you timely, insightful news and market commentary on the emerging powerhouse and the big businesses behind its meteoric rise. Like what you see? You can subscribe

Without further plot twists, Modi will likely be sworn in as prime minister this weekend. However, the weakened mandate has damaged his brand."Modi's air of invincibility is shot," said Gavekal Research's Tom Miller and Udith Sikand on Wednesday."In future he will face political challenges not only from opposition leaders but internal party rivals as well."

"Leadership continuity should trickle down to political continuity too," said Bank of America economist Aastha Gudwani in a research note to clients."While some hard reforms may get pushed out to the middle of the tenor in a coalition, the reform agenda is still intact." "That may impede growth, as Modi will find it harder to liberalize agricultural, land, and labor markets," said the Gavekal Research analysts."But it could leave India in a more secure place socially if it dissuades the BJP from pursuing hardline Hindu nationalist policies."Indeed, coalitions have been profitable to investors.

"The directional focus for increased capex is likely to continue, with manufacturing continuing to get policy support, in line with our economists' views," said Goldman Sachs' Pulkit Patni in a note to clients on Thursday. "A lot of the good news is in the price, and therefore, investors may choose to wait for some of the announcements to translate into actual execution," Eleswarapu told CNBC's Inside India.people have been asking her after Modi's weaker-than-expected election win. From New Delhi, CNBC's Sri Jegarajah reported that the prime minister will need to

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