Investor fears led to a crash of currency, stock, and bond markets because of lack of confidence in the newly-elected government. Investors question the economic policies of the soon to form coalition of communist backed Sonia Ghandi.
Heavy losses caused some markets to suspend trading Monday. The Bombay Stock Exchange and National Stock Exchange indices experienced severe plunges. The Securities Exhange Board of India has attempted corrective measures.
The Congress Party of leftists ousted the National Democratic Alliance in elections last week. The new government is sworn in Wednesday.
Market instability is expected to continue for days. India is the third largest economy in Asia. Source