SINGAPORE, Nov 27 (Reuters) - At least 86 people were killed in attacks by gunmen in India's commercial hub Mumbai and security forces began moving on two luxury hotels on Thursday where foreign hostages were being held, officials and witnesses said.

The attacks by small groups of gunmen armed with automatic weapons and grenades on the hotels and other sites in the city came amid state elections and risk destabilising the country ahead of national elections next year.

Following are analysts' reactions to the attacks:

ENRICO TANUWIDJAJA, CURRENCY STRATEGIST AT OCBC BANK IN SINGAPORE:

"People are still waiting for a likely motivation of targeting foreigners, but at this time of the market slowdown, such bad news as this would not do any good for the Indian economy.

"This might give reason for foreign funds to hold inflow for the time being, but the immediate concern will be on the domestic and tourism spending nearing the year-end.

"The Reserve Bank of India is likely to guard the dollar/rupee on possible spikes."

ROBERT BROADFOOT, MANAGING DIRECTOR OF THE POLITICAL AND ECONOMIC RISK CONSULTANCY (PERC) IN HONG KONG.

"This attack seems to me to have the hallmarks of one of the younger indigenous groups, the Indian Mujahedeen or one of their offshoots.

"This was a well-planned, carefully co-ordinated, almost army-style operation. It's very different from a set of indiscriminate suicide bombings. The style of this attack is very different, particularly the specific targeting of foreigners."

"India is not going to hell in a handbasket. The economy has a lot of depth. I certainly don't think that this attack is going to cripple or wreck the economy."

JOSEPH TAN, ASIA CHIEF ECONOMIST AT CREDIT SUISSE IN SINGAPORE:

"Clearly, it will be negative for the sentiment towards India at this point of time, the time when the world is already looking to be highly uncertain in term of its growth prospects.

"When the equity market actually opens, it could probably be opening down as opposed to the rest of Asia.

"Secondly, such terrorist attacks do not have a lasting impact on the market -- I don't think it will have a lasting impact on India.

"This will be negative for the rupee versus the dollar, but again I want to stress that the impact will be short-lived." (Compiled by Asia Treasury)

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