125 dead, 327 injured in Mumbai attacks

Early on Friday morning, sporadic gunfire and explosions continued at a Jewish centre where at least 10 Israelis were trapped or being held hostage.

Police said militants were also still holed up at the Taj Mahal hotel and the nearby Oberoi-Trident hotel along with an unknown number of hostages.

Prime Minister Manmohan Singh pinned blame for the attacks on militant groups based in India's neighbours, usually an allusion to Pakistan, raising prospects of renewed tension between the nuclear-armed rivals.

He warned of "a cost" if these nations did not take action to stop their territory being used to launch such attacks.

An estimated 25 men armed with assault rifles and grenades -- at least some of whom arrived by sea -- fanned out across Mumbai on Wednesday night to attack sites popular with tourists and businessmen, including the city's top two luxury hotels.

Police said at least seven of the attackers were killed and nine suspects had been taken into custody. They said 12 policemen were killed, including Hemant Karkare, chief of the police anti-terrorist squad in Mumbai.

At least six foreigners, including one Australian, a Briton, an Italian and a Japanese national, were killed. Scores of others were trapped in the fighting or were being held hostage.

More than 300 people were wounded.

Commandos battled the militants through Thursday, often room to room in the hotels, to rescue people, police said. Flames billowed out of the buildings and loud explosions were heard during the fighting.

Mumbai, a city of nearly 18 million people that is the nerve-centre of India's growing economic prowess and home to the "Bollywood" film industry, was virtually shut down on Thursday as the battles raged.

But in a reflection of the poverty that sits cheek-by-jowl with the upmarket shops and restaurants in the city, hundreds of people were stretched out asleep on pavements and handcarts near the scenes of fighting.

The sea-facing Marine Drive in front of the Oberoi-Trident is a favoured spot for early morning walks, and some regulars came out for their constitutional despite the tension.

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