Rising smartphone star Xiaomi Corp is facing a major setback in India after a local court halted its sales over a patent dispute.

The sudden ban may weigh on Xiaomi's performance in its most important overseas market and its ambitious globalization plans, industry insiders said.

The Delhi High Court told Xiaomi and its local e-commerce partner Flipkart to stop importing and selling devices in India until Feb 5, when the court will hear Swedish telecom equipment maker Ericsson AB's patent-infringement petition, Indian newspaper The Economic Times reported on Thursday.