The atmosphere was surcharged as Modi, amid tight security, walked into Rajaji Hall, where the AIADMK supremo's body is lying in state.
As he walked towards Panneerselvam after placing a wreath near the body, the latter broke down and hugged him. Modi affectionately patted him, suggesting that he be strong.
As Modi walked back to his vehicle, Panneerselvam again hugged him with tears in his eyes.
Earlier, the Prime Minister consoled Jayalalithaa's close confidante Sasikala, who was crying.
A huge posse of security personnel, including black cat commandos, were on alert as the Prime Minister passed through the huge crowd that had converged at the Rajaji Hall.
Modi was also seen requesting people not to take photos on their mobile phones as he greeted them with folded hands.