While the Congress won 15 seats, DMK won two seats in the 30-member assembly.
The All India N.R. Congress (AINRC) only won eight seats and the AIADMK grabbed four. An independent candidate was also elected.
With the people's verdict going against him, Chief Minister N.Rangasamy submitted his resignation to Lt.Governor A.K. Singh here.
Speaking to reporters Rangasamy, who was re-elected from the Indira Nagar seat, said he had submitted his cabinet's resignation.
Prior to the elections, he said his alliance is with the people and not with any other political party. In 2011, AINRC had an alliance with AIADMK.
The Congress-DMK combine were upbeat about winning the polls as factors like closure of factories, loss of jobs and lack of infrastructure development played against the AINRC government.
Getting Puducherry statehood is one of the major promises of all the parties.
While the Congress did not project any chief ministerial candidate during the poll, former chief minister V.Vaithilingam is a hot contender for the post.
A shock defeat for the Congress however was the defeat of prominent leader E.Valasaraj to Independent candidate V.Ramachandran in Mahe constituency.
While there are several parties like the Bharatiya Janata Party, the Communist Party of India, the Communist Party of India-Marxist, PMK and others in the fray, none of them were able to make their mark.