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.

"I hear they (the security forces) have relaxed the rules a little so I came for my morning walk but I did not see any of the regulars," said Raja Ram Patil, 54, a local businessman.

British Prime Minister Gordon Brown said the attack would be met with a "vigorous response".

U.S. President-elect Barack Obama condemned the incident. Obama, who favours a regional solution to the war in Afghanistan and is encouraging Pakistan and India to make peace over Kashmir, was monitoring the situation closely, an aide said. [nLR502129]

The Times of India published a photograph of one of the attackers, dressed in a black T-shirt and holding an assault rifle with a backpack over his shoulder.

... contd.