Marxists Hand Gandhi Defeat

NEW DELHI —  Prime Minister Rajiv Gandhi was dealt his most serious political blow in 27 months in power when Marxists regained control of one state and stood poised to consolidate their hold on a second as vote counting in local elections continued today.

A Marxist-led coalition regained control of the southern Indian state of Kerala, replacing a ruling group headed by Gandhi’s Congress-I party that had defeated it five years ago. The ruling Marxist Left Front in West Bengal also looked set to retain power by a landslide victory over Congress-I. Only in Jammu and Kashmir was Gandhi’s party heading for victory.