Taliban fighters opened fire, hurled grenades and staged suicide bombings in central Kabul yesterday, killing 16 people in a show of defiance against the Western-backed government and a Nato offensive to wipe them out.

Among the dead were eight Afghans, including three police officers, four Indian nationals and an Italian, the Afghan Interior Ministry said. The French Foreign Ministry said one French national had been killed in the assault.

The attack came as Nato-led foreign troops and Afghan forces press ahead with an offensive against the Taliban in their stronghold in southern Helmand province, a key element of Washington's new strategy to put down a growing insurgency.

Some 38 people were wounded in the two-hour assault which started after at least one suicide bomber blew himself up in front of a guest house frequented by Indians.

"I heard a big blast," witness Quaree Sameh said. "The glass shattered. The attackers were throwing grenades and shooting."

The blast triggered car alarms and sent plumes of thick smoke into the damp and cold morning air at the start of the Afghan weekend.

"I was inside my room when I heard a loud explosion and then I could not see if people were killed or wounded because I locked my door," said an Indian who gave his name as Kashif, who was staying in the guest house.

Afghan security forces wearing bullet-proof vests rushed to secure the area, which is home to Kabul's biggest shopping centre, exchanging fire with the militants. Others carried out wounded Indians on their backs or stretchers.

Taliban spokesman Zabihullah Mujahid claimed responsibility for the attacks on behalf of the Islamist militants.

"Our mujahideen (holy warrior) fighters managed to attack in the heart of Kabul city once again," Mr Mujahid said by telephone from an undisclosed location.