Insuring exposure to the State bank of India rose today as the currency took another battering. 5 year swaps were up to 351 bps, up 45 bps as investors become wary of India’s ability to finance its current account deficit.

On top of that, earlier today India’s stock market regulator reported that Foreign investors sold $107m in stocks and debt on Friday. A taste of things to come for stocks as India’s sensex index craps out?

Foreign selling has amounted to nearly $12bn since May.

Given how quickly the market got nervous over Greece in the early days, if the Indian government can’t get a handle on their problems soon then it may lead to further uncertainty which will then cast a shadow over the whole emerging market picture.