Indian commandos are fighting to rid Mumbai of terrorists responsible for a string of attacks that left at least 125 people dead.

Indian troops help hostages escape from the Oberoi Trident hotel

Gunfire and explosions have been heard throughout the day and night from a besieged Jewish centre and two luxury hotels – gathering points for Mumbai’s elite.

Commandos have been bringing hostages, trapped guests and corpses out of the Oberoi Trident and Taj Mahal Palace hotels as fires erupted periodically.

Some 39 hostages have been rescued from the Oberoi Trident, according to Sky sources.

Earlier, video from the heart of Mumbai (formerly Bombay) showed a fierce blaze raging in part of the hotel.

Authorities say 400 people have been brought out of the Taj Mahal Palace hotel and all militants have been cleared from the building but it is unclear how many are still on the loose across the city.

Among those killed in the coordinated terrorist strikes on the Indian coastal city are 14 police officers, one national guard and six foreign nationals, including at least one Briton.

Businessman Andreas Liveras spoke to the British media as he was held hostage in the basement of the Taj Palace Hotel.

But just hours later the 73-year-old from Nottinghamshire was caught in a crossfire and killed.

Over 300 people have been wounded, including at least seven Britons.

Sky’s Alex Crawford, in Mumbai, said: “The Mumbai head of police says the operation is very much in its end stages both at the Oberoi and outside the Taj Hotel.”

She added: “The head of Mumbai police believes nine terrorists have been killed.”

Indian security forces say they have arrested three militants, including a Pakistani national, inside the Taj Palace hotel.

Meanwhile, two explosions have been heard at a Jewish centre where terrorists are believed to be hiding.

There have been conflicting reports about the beseiged headquarters of the ultra-orthodox Jewish outreach group Chabad Lubavitch.

A diplomat who has been monitoring the situation closely said no hostages had been released, contradicting an Indian official who said earlier eight hostages from the centre were freed.

The wave of terror began after small groups of militants, armed with automatic weapons and grenades, entered the city by boat and fanned out.

They burst into two hotels, a hospital and a railway station as well as a cafe popular with foreign tourists, firing indiscriminately and throwing grenades.

Indian Prime Minister Manmohan Singh said the attacks were well-planned and probably had “external linkages”.

A Pakistani merchant vessel “laden with explosives” have been apprehended off the coast of India in the wake of the attacks, says Sky’s Crawford.

Pakistan’s defence minister earlier insisted his country had played no role in the terrorist attacks.

The location of the coordinated attacks:

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Briton Myles Curtis, who was staying at the Taj hotel, told Sky News he managed to avoid several machine-gun attacks before escaping to the safety of the Australian consulate.

“There were a lot of AK-47s and grenades going off,” he said.

“We had one aborted attempt to get out when the army tried to storm where we were and a number of people got killed.

“After three more attempts we were led out by the army and boarded a bus.

“We thought we were safe but then the gunfire started again. We realised we had to get off the bus and we made a run for it.”

Police have not said how many died at the Taj but Bombay Hospital said nine Europeans from the hotel were admitted, three of them in critical condition with gunshot wounds.

Conservative MEP Sajjad Karim was also in the Taj Mahal Palace when it was attacked.

He told Sky News: “There was a lot of commotion in the main lobby, and then another gunman came right in front of us and started shooting.

“I saw a number of people go down, but I was fortunate enough to get away.”

Eyewitness reports say the attackers were targeting Britons and Americans.

Alex Chamberlen, a Briton caught in the attacks, told Sky News an attacker asked tourists if they were British or American before opening fire.

Blood stains the floor of Mumbai’s main train station

A group calling itself the “Deccan Mujahideen” has claimed responsibility for the attacks, according to the Press Trust of India.

Prime Minister Singh said: “It is evident that the group that carried these attacks, based outside the country, had come with single-minded determination to create havoc in the commercial capital of the country.”

The Foreign and Commonwealth Office says those concerned about their British friends and relatives should call +44 (0)20 700 800 00 and all Britons in Mumbai should stay indoors.

Prime Minister Gordon Brown said the horrific incident was met by “shock and outrage” around the world and pledged all possible UK support.