Nov. 27 (Bloomberg) -- Hindustan Unilever Ltd. and Indian units of financial companies such as Merrill Lynch & Co. shut their Mumbai offices today after terrorists killed 101 people in the financial hub of the world's second-fastest growing economy.

India halted stocks, bonds, currencies and commodities trading, forcing brokerages and fund-management companies to close offices today. The Oberoi and Taj hotels that were targeted are near the financial district, which houses Merrill Lynch, Morgan Stanley and HSBC Holdings Plc.

Terrorists armed with grenades and rifles stormed into the Taj Mahal Palace and Tower hotel and the Trident Oberoi complex late yesterday, saying they were targeting Americans and Britons, according to eyewitness reports. The attacks, the worst in the city since train blasts in July 2006, have focused on foreigners in India for the first time.

``This targeted attack on foreigners will have an incalculable impact on the investment climate and the tourism and hospitality industry,'' said Apurva Shah, head of research at Mumbai-based Prabhudas Lilladher Ltd. The brokerage shut its Mumbai office today.

The attacks come as India tries to boost its economy, battered by the global financial crisis. Finance Minister Palaniappan Chidambaram has said economic growth this year will slow to 7.5 percent before rebounding to 9 percent next year.

Investors Exit

Overseas investors have pulled out a record $13.5 billion from Indian stocks in 2008 as of Nov. 25, the nation's market regulator said. The Bombay Stock Exchange} Sensitive Index, or Sensex, has slumped 56 percent this year. Foreign investors bought a record $17.2 billion of local equities in 2007.

Police cordoned off the area near the Taj and Oberoi hotels and commandos freed hostages held by gunmen at one of the buildings. The attacks began at about 10 p.m. local time yesterday with explosions and gunfire ringing out across the city.

Fire broke out on several floors of the Mumbai's Trident- Oberoi hotel complex and the Taj Mahal Hotel as commandos fought terrorists.

Unilever's top management including Chief Executive Officer Patrick Cescau and incoming Chief Executive officer Paul Polman escaped unhurt from the Taj Mahal hotel.

``Paul Polman, myself and the Hindustan Unilever board were in the Taj Hotel when the attack took place,'' Cescau said in an e-mailed statement. ``We are all safe and well.'' They were in Mumbai for a business meeting.

Travel Curbs

Daiichi Sankyo Co., Japan's third-largest drugmaker, suspended travel to India. The company, which purchased a controlling stake in India's Ranbaxy Laboratories Ltd., said it will stop all travel to India until ``safety is assured.''

GlaxoSmithKline Plc and Sanofi-Aventis SA, Europe's top two drugmakers, suspended travel to India after the terrorist attack. Glaxo has canceled travel to the Asian nation for the coming days, a temporary measure in the interest of workers' safety, spokeswoman Alice Hunt said today.

AstraZeneca Plc, the U.K.'s second-biggest drugmaker after Glaxo, also suspended travel to Mumbai until further notice.

Dell Inc. and Hewlett-Packard Co., the world's two largest computer suppliers, limited their staff movement in India. Dell canceled all travel by employees into India for the next 48 hours. Hewlett-Packard closed its Mumbai office and prohibited staff from traveling to the city.

Foreigners Targeted

The terrorists targeted foreign nationals and landmark hotels, adding a new dimension to a wave of bombings in India this year that has killed more than 300 people. Multiple attacks have rocked India's cities with bombs planted in markets, theaters and near mosques.

A little-known Islamist group called the Deccan Mujahedeen claimed responsibility for the Mumbai attacks, the home ministry has said. The attackers may have come from Pakistan, the Times Now television channel reported, citing an unidentified intelligence official.

Pakistan's Foreign Minister Shah Mahmood Qureshi condemned the terrorist attacks in Mumbai.

``Terrorism is a menace threatening humanity and humanity should join hands in fighting this scourge,'' according to a foreign ministry release citing the minister. ``Pakistan condemns terrorism in all its forms and manifestations.''

Office Closures

Reliance Industries Ltd., India's most valuable company, which has its main office in a building near the Oberoi hotel, may have shut some offices in Mumbai as the areas have been cordoned off, said Paresh Chaudhry, spokesman of the company.

Hotels across the nation have stepped up security with armed guards checking cars and setting up metal detectors.

The Imperial Hotel, a favorite destination for foreign tourists in New Delhi, wasn't allowing visitors without verifying credentials. The hotel is coordinating security with police and residents.

Indian Hotels Co., which owns the Taj hotel in Mumbai, said it was cooperating with the police and the government authorities to ensure the safety and security of guests and employees.

Schools and colleges in Mumbai are closed today, the Press Trust of India reported.

To contact the reporter on this story: Saikat Chatterjee in New Delhi at schatterjee4@bloomberg.net.

Last Updated: November 27, 2008 10:13 EST