NSG commandos battled to flush out militants still resisting in three pockets in the country's financial capital on Friday, over 24 hours after heavily armed fighters killed at least 125 people in coordinated 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.

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