Early returns in state elections in India indicate that the Hindu nationalist government BJP could be facing big setbacks in its first test of popularity since coming to power eight months ago.

The returns suggest that the BJP is facing defeat in the capital Delhi and the western state of Rajasthan.

In a third state, Madhya Pradesh, the BJP is also trailing.

The main federal opposition party, Congress, is ahead in all three states.

There are no indications yet from the fourth state involved, Mizoram.

Correspondents say that while the outcome of the state elections has no direct bearing on the federal government, serious losses of prestige could provoke further in-fighting in the Prime Minister's nineteen-party coalition.