Coal stocks have pulled back amid speculation about future leadership in India, a major importer, but the sell-off may have more to do with short-term trading sentiment rather than a shift in market fundamentals.

TheRange Global Coal Index ETF(NYSE:COAL) fell 3.8% Tuesday as early results in India showed Prime MinisterNarendra Modi's party secured a third consecutive term but didn't win enough seats for an outright majority.

That appears to have led to some speculation that his government might face resistance to plans to add at least 55-60 gigawatts of coal-fired electricity generation by 2031-2032.