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First India, then Indonesia... who is next?

Andrew Unangst | Photographer's Choice | Getty Images

As the sell-off in emerging markets intensified this week, India and Indonesia have been left the most severely bruised and battered. Now analysts are concerned of a domino effect that could spread to other emerging markets.

(Read More: Brutality scorecard: Which emerging stocks have it the worst?)

Richard Yetsenga, head of global markets research at Australia's ANZ bank, told CNBC that India's troubles represent a "great microcosm" for what is happening in emerging markets right now.

"India is a microcosm in the sense that nothing domestic occurred to trigger this latest move," he said. "India's current account deficit and budget deficit have been very wide for at least two years. It's only when U.S. bond yields really started going up and the free money tap turned off that it started to be manifested in the currency."

(Read more: What's really holding back growth in India)

Yetsenga said he expects India's fallout to be repeated across other emerging market economies, with those with high levels of external leverage being hit first, but then possibly spreading to other markets with high degrees of internal leverage.

"The cost of capital has gone up and that's causing issues everywhere. In that sense all of Asia is exposed to a higher global cost of capital," he noted.

"Places like Malaysia and Thailand have had particularly strong credit growth in the last couple of years, so they look fine from an external perspective but they have a high degree of internal leverage," Yetsenga said.

On Tuesday, Credit Suisse also identified the two countries as particularly vulnerable.

Robert Prior-Wandesforde, director of Asian economics research at the bank, said both Malaysia's ringgit and Thailand's baht could come under further pressure, and that Malaysia's situation was more worrisome.

"These pressures will remain highest on Malaysia as it experiences a more significant deterioration in its current account position while foreign ownership of its bonds and bills are far greater," he said.

The ringgit has fallen nearly 8 percent this year to a three-year low, with selling accelerating last week.

(Read more: Hong Kong sees no shelter from housing storm)

"Malaysia's seen a dramatic deterioration of its current account surplus and...there's also suspicion that the underlying efficiency of the economy has deteriorated and that the government hasn't doesn't enough structural reform to turn around the trend in declining productivity growth," Frederic Neumann, MD & co-head of Asian economics research at HSBC told CNBC.

The other emerging markets Neumann is concerned about are Brazil and Turkey. In addition, analysts warned that markets, which have experience big run-ups in property prices, such as Singapore and Hong Kong, are also at risk from higher interest rates.

However, Neumann added that he did not think it was a good idea to group all emerging markets together as one, and there were some economies that he believed would prove resilient.

(Read more: Unlocking the playing field for emerging markets)

"I'm not sure this (concerns of an India-style crisis) applies to all emerging markets, if you look in Asia, the Philippines appears to be in much better shape, so is South Korea, and I think despite the recent sell-off, Thailand is as well," he said.

—By CNBC's Katie Holliday: Follow her on Twitter @hollidaykatie

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