Update as of 0730 Eastern Time:
From Fox News:
Indian TV reports commando teams are conducting room-to-room searches in two luxury hotels in Mumbai where Muslim terrorists are holding an unknown number of hostages.
NDTV reports gunfire and explosions at the Taj Mahal and Oberoi Trident hotels, and the release of some hostages.
Bodies reportedly are being removed from the hotels, and among them are an Australian, Japanese and British nationals.
Police reportedly are negotiating with gunmen holding hostages at the ultra-orthodox Jewish Chabad Lubavitch Center.
There were unconfirmed reports that some of the hostages at the Oberoi Trident hotel are Israeli nationals.
Reuters reports a militant at the Lubavitch Center phoned an Indian TV station with an offer to talk with government officials about the release of hostages.
The caller reportedly also complained about abuses in Indian Kashmir.
"Are you aware how many people have been killed in Kashmir?" the caller asked, speaking in Urdu. "Are you aware how your army has killed Muslims. Are you aware how many of them have been killed in Kashmir this week?"
From CNN:
Indian Prime Minister Manmohan Singh suggests the group behind the Mumbai terrorist attacks is based outside the country as police battle gunmen in three locations to free hostages a day after more than 100 people were killed.
A standoff continued at the Oberoi Hotel, where about 100 members of a specialized unit of the Indian police undertook an operation to rescue four to five foreigners hostage on the 19th floor.
CNN producer Phil O'Sullivan reported a "very loud explosion came from right deep in the hotel" and a lot of shooting.
At the nearby Taj Mahal hotel, CNN's Sara Sidner reported another blast had rocked the building and flames could be seen.
Medics took stretchers into the hotel and brought out bodies. Police were going floor to floor to flush out gunmen. About five were believed to be holed up in the Taj; another three in Oberoi, officials said.
Maharashtra official Bhushan Gagrani said the Taj situation was "almost sorted out" and that police expected to clear the Oberoi by tonight. Hostages remained, but he didn't say how many.
Meanwhile, Singh suggested the group behind the attacks was based outside India and probably had "external linkages."
"It is evident that the group which carried out these attacks, based outside the country, had come with single-minded determination to create havoc in the financial capital of the country," he said.
More to follow:
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