Special forces stormed a Jewish centre in Mumbai today as part of efforts to end a hostage crisis and flush out Islamic militants behind an audacious assault on the city that left 130 people dead.

At least 17 black-clad commandos were seen abseiling into the complex from a helicopter and gunfire and explosions were heard, while "mopping up" operations were also under way at two luxury hotels in India's financial hub.

It remained unclear how many people, among them a group of Israeli citizens, were still being held hostage or trapped in their rooms at the three sites.

Witnesses gave dramatic descriptions of young gunmen wearing jeans and T-shirts firing indiscriminately, of panicked guests seeking refuge wherever they could, and bodies lying in pools of blood.

The attacks, apparently tailored to gain maximum international attention, began Wednesday when gunmen stormed around a dozen targets in Mumbai, including a station, a hospital and a restaurant popular with tourists.

While Indian Prime Minister Manmohan Singh said the militants were from a group based overseas, the military official leading the rescue, Major General RK Hooda, was swift to point the finger at arch-rival Pakistan.

Local reports said a Pakistan militant who was among three gunmen detained had told investigators that 12 attackers were dropped at sea and had reached Mumbai by speedboat.

At least five gunmen had been shot dead, police said. Fourteen security personnel were also killed, including the head of Mumbai's anti-terror squad.

Home Ministry sources said two Pakistani ships had been detained off the Indian coast, but the government in Islamabad denied any involvement in the coordinated attacks, which were claimed by a previously unknown group.

Taj Mahal hotel 'almost cleared'

The storming of the Mumbai office-residential complex containing a Jewish centre came shortly after dawn today, nearly 36 hours after the attacks began.

The Israeli embassy denied Israeli forces were involved in the assault.

Elsewhere in the city, officials said they had almost cleared the luxury Taj Mahal hotel. One injured gunman was still believed to be in the building.

At the Oberoi/Trident hotel, 39 people had been rescued and "mopping up" operations were under way, police said.

"I think we should be able to mop up the operation very quickly," National Security Guards director general J.K. Dutt said.

Scores of guests had been trapped in their rooms, too terrified to move. Some gave hair-raising accounts of the dramatic scenes inside.

"We've been waiting for hours and hours for the army to come and say we can go downstairs," one Western woman told AFP by mobile phone late Thursday from inside the Oberoi/Trident.

"We have to keep silent. They could be looking for hostages," she said.

A South African security guard, Faisul Nagel, said his team had evacuated about 120 guests from the Taj Mahal after using tables and refrigerators to barricade themselves into the kitchen and a conference room.

"We armed ourselves with kitchen knives and meat cleavers," he said.

A British-Cypriot tycoon who was killed had earlier given an interview to the BBC describing the scene inside the Taj Mahal, where he estimated 1,000 people were packed into one function room.

"We hid ourselves under the table and then they switched all the lights off. But the machinegun kept going, and they took us into the kitchen, and from there into a basement, to come up into a salon," Andreas Liveras said.

"Every time you hear something, everybody jumps. Everybody is just living on their nerves."

Deccan Mujahedeen claimed responsibility

Indian media reports said between six and nine foreign nationals were among the dead - including a Japanese businessman, an Australian, a Briton, a German and an Italian.

The Israeli embassy said around 10-20 Israeli nationals were among those held hostage or trapped.

Guests who escaped recounted how the gunmen had methodically tried to round up US and British citizens.

"They said they wanted anyone with British and American passports," said one Briton, Rakesh Patel.

In an address to the nation, Prime Minister Singh said the attacks were "well-planned and well-orchestrated" and warned neighbours that provided a haven to anti-India militants would have "a cost" to pay.

The aim had been to spread panic by choosing high-profile targets and "indiscriminately killing foreigners," Singh said.

A group calling itself the Deccan Mujahedeen claimed responsibility, with one gunman telling an Indian TV channel that the outfit was of Indian origin and motivated by the treatment of Indian Muslims.

But the PTI news agency said Indian officials were pointing the finger at the Pakistan-backed Lashkar-e-Taiba - notorious for a deadly assault on the Indian parliament in 2001 that almost pushed India and Pakistan to war.

The main Bombay Stock Exchange was to open today for normal trading, while some shops, schools and businesses remained closed.

England's cricketers abandoned their ongoing one-day series against India and opted to fly home.