 Selling gathered pace as the exit polls came in |
India's premier stock market has slumped on fears that a hung parliament will stall economic reforms. Bombay's Sensex index ended down 243 points or 4.4% at 5,312.55, the lowest close in five months, and the biggest one-day fall in almost four years.
Opinion polls after the last day of the marathon five-week election indicated a hung parliament.
Added impetus for the falls came after a key member of the BJP-led coalition lost heavily in state elections.
The election results are due on Thursday.
The wipe-out suffered in Andhra Pradesh by the regional Telugu Desam Party - one of BJP Prime Minister Atal Behari Vajpayee's main allies - is seen as a blow to the ruling coalition's chances of an overall majority.
The result is likely to be be a lengthy period of horse-trading over policies and portfolios.
That, investors fear, could put at risk the privatisation programme and other reforms, many of which have already faced resistance from within the coalition.
India's economy has been booming in recent years, with annual growth of more than 7%.
But many in rural areas have not shared in the boom - a factor which may have hurt the ruling coalition, which campaigned on its economic record.
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