Spanish Prime Minister Mariano Rajoy's conservative Popular Party has lost its outright majority in Parliament following the general elections on Monday. The ruling party, however, emerged as the single-largest party by securing 28 percent of votes and 123 seats in 350-seat national Parliament.

The newcomer anti-austerity Podemos party secured 22 percent of votes and 69 seats, while the Ciudadanos got 40 seats from 13.9 percent votes, according to BBC. The Popular Party's traditional rival, socialist PSOE, secured 90 seats from 22 percent of votes.

Rajoy said that his party will begin dialogue with political rivals in a bid to form a stable government.

"The Popular Party believes it has a responsibility and a mandate to start a dialogue and explore the viability of a stable government that can offer the necessary certainty inside and outside Spain," he said after meeting with party leaders, according to Reuters.

"Spain cannot afford a period of political lack of clarity that would spoil the progress achieved during these years," he told reporters in a press briefing, according to Business-Standard. 

The second-largest PSOE and third-largest Podemos, however, ruled out support to Rajoy's candidacy for Prime Minister. In addition, fourth-largest Ciudadanos also decided to sit in opposition.

"The Popular Party needs to try to form a government. It is up to the PP. This is the place we are in and in which we will stay for weeks until the chambers of Parliament are formed and the PP has the initiative. Caution and responsibility are the watchwords. However, I can also tell you that the Socialist Party will vote 'no' to Rajoy's candidacy for Prime Minister," Socialist Party leader Cesar Luena said, according to EuroNews.