UPDATE 1-Operation at Mumbai Jewish centre ends, hostages dead

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NEW DELHI, Nov 28 (Reuters) - Indian commandos killed two Islamist gunmen at a Jewish centre in Mumbai but failed to save two hostages who appeared to have died.

"We have neutralised two terrorists," India's National Security Guards chief J.K. Dutt said. "Along with that we have also found two bodies. Those bodies appear to be of hostages."

The militants had been holding hostages, including an Israeli rabbi and wife, at the centre for almost 48 hours.

An Israeli rescue service run by Orthodox Jews said staff it had sent to Mumbai to help also believed that hostages in the Chabad centre had died.

"Apparently the hostages did not remain alive," the Zaka service said in a brief statement quoting its staff in Mumbai, without elaborating.

Earlier a huge crowd of onlookers cheered as a group of Indian commandos left the besieged Jewish centre, prompting local television channels to announce the operation to dislodge the gunmen had ended.

Some people punched the air with their fists. Other commandos chatted on the roof of the building, looking relaxed.

The Mumbai police chief said the operation was still in its final stages, while Dutt said the third floor of the building had not been secured.

A short while before, the commandos had blown up a hole in the outer wall of the building.

The iron bars of Jewish centre windows were twisted after repeated gunfire during the two-day siege. (Reporting Simon Denyer; Editing by Alistair Scrutton and Editing by Mark Williams)