Analysts this morning began expressing fears for India's investment outlook and warned of long-term damage unless the country's government responds swiftly following one of the worst terrorist attacks in the country's history, which left markets in all asset classes closed as companies in Mumbai were still accounting for their staff.

The trouble erupted in the early hours of Thursday with a number of coordinated attacks across the city. In addition to the two luxury hotels, the Leopold Restaurant, a hospital and the city's busiest commuter railway station were hit in the attacks, in which grenades and automatic weapons were used.