Foreign equity investors turn to hedging on India election jitters

By Nimesh Vora and Bharath Rajeswaran

MUMBAI, May 14 (Reuters) - Foreign investors are loading up on options to hedge their equity portfolio against a slide in benchmark indices as they worry that Prime Minister Narendra Modi's party may not achieve the landslide victory predicted by opinion polls just weeks ago.

The last major poll had estimated that the ruling Bharatiya Janata Party (BJP) party would win 342 seats, comfortably above the 272 majority required to return to power.

But a lower turnout so far in India's general elections and changing political rhetoric have dampened expectations of a landslide victory for the BJP and its allies.

Votes are set to be counted on June 4.