- MUMBAI: Stock prices of Indian retailers have plunged Monday after a key coalition ally said the government shelved its decision to throw open the country's huge retail sector to foreign investors.
The government has not officially announced a change in its policy on foreign direct investment.
The lack of clarity has raised serious questions about the ability of India's ruling Congress Party to govern effectively.
The Congress Party has been scrambling to reassert its leadership and kick-start investment in the deteriorating economy.
Jittery investors sent shares in Indian retailers down as much as 9 percent in midday Monday trade in Mumbai.