By Rina Chandran MUMBAI (Reuters) - Suspected Islamist gunmen launched waves of attacks in the heart of India's financial capital, killing at least 101 people and taking many foreigners hostage in two of the city's plushest hotels, police said on Thursday. The late-night attacks sent shockwaves through an economy already under strain. Authorities closed stock, bond and foreign exchanges as commandos and armed police laid siege to the gunmen. Some 16 hours into the crisis, scores of tourists remained trapped in the Taj Mahal hotel, a 105-year-old city landmark, and at the five-star Trident Oberoi in Mumbai's downtown peninsula, the city's financial and tourist heart, officials said. At least 101 people were killed, including six foreigners, police said. Another 287 people were wounded in the attacks, which were claimed by the little-known Deccan Mujahideen group. One militant inside the Oberoi told Indian television by phone that the hostages would only be freed when all mujahideens, or Islamic holy warriors, being held in Indian jails were freed. The man, who identified himself only as Sahadullah, said he was one of seven attackers inside the hotel. "Release all the mujahideens, and Muslims living in India should not be troubled," he said. The central bank closed the bond and foreign exchange markets but said it would continue auctions to keep cash flowing through interbank lending markets, which seized up after the global financial crisis destroyed Wall Street banks in September. The attacks were bound to spook investors in one of Asia's largest and fastest-growing economies. Mumbai has seen several major bomb attacks in the past, but never anything so obviously targeted at foreigners. Foreigners have already been heavy sellers of Indian assets and a steep fall in the Indian rupee was now feared. Nerves were already clearly rattled. Credit default swaps, insurance-like contracts on the State Bank of India's five-year bonds, widened 15 basis points to 435 basis points. Trade Minister Kamal Nath described the attacks as "an unfortunate event" but said HE did not expect they would slow investment. The attacks could be another blow for the Congress Party-led government ahead of a general election due by early 2009. The government has suffered a string of state election losses in the last year. The main Hindu-nationalist Bharatiya Janata Party, which has done well in state polls, has criticized the government for being soft on terrorism after a series of bomb attacks in Indian cities this year. Strategic expert Uday Bhaskar said the attacks had grave implications for India on many levels. Continued...Mumbai gunmen battle army, foreigners held hostage
Thursday, 27 November 2008
Inside the Oberoi
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