The Indian Prime Minister today said that the perpetrators of the New Delhi market blasts were likely to have links with militant groups in Pakistan.

Manmohan Singh is reported to have made the comment to President Musharraf of Pakistan in a phone call today, as the death toll from the explosions rose to 62. Around 90 people remain in hospital, many critically wounded.

Mr Singh said that he was "dismayed" that those behind the three near-simultaneous bombings on two busy markets in India's capital on Saturday appear to have "external links".

Although the subject of near-universal speculation, the Indian Government has until now been reticent to point the finger, for fear of jeopardising relations with its neighbour. Indian analysts and newspapers have been less hesitant: most directly attribute the attacks to Pakistan-based Islamic groups fighting to force India to give up its claim to divided Kashmir.

Accusations of Pakistani involvement in a 2001 attack on the Indian parliament put the two countries on the brink of war. Both sides now appear intent on maintaining the momentum toward peace, despite the latest attacks.

Pakistan was quick to condemn the atrocity, with President Musharraf today condemning it as a "dastardly terrorist attack." He told reporters his country would fully cooperate in any investigation, and said: "Pakistan stands with India on this act of terrorism."

Detectives were today scanning through millions of mobile phone records as they attempt to unpick the bombers' communication network.

Meanwhile, armed soldiers were on patrol as the familiar chaotic bustle returned to the Sarojini Nagar and Paharganj bazaars.

At the wrecked Sarojini market, traders began to re-open their stalls, hanging tinsel decorations and stringing up fairy lights. "If we don’t open now, the message will be that we have buckled to the terrorists," said Ram Bhaj, a shopkeeper.

Teenagers were playing cricket on the city’s lawns and the city's parks were busy with people out for early morning walks. "We have to be strong and face up to terrorism," said Amit Gupta, a bank executive."These acts of men desperate to make their presence felt will not affect the spirit of our city."

Officials were attempting to give an accurate breakdown of the gender and age of those killed but many of the bodies are not readily identifiable. Three Indian families claiming the bodies of two charred children agreed to cremate them in a shared service.

The search for one missing man ended in a hospital mortuary. A relative dialled his mobile phone, and a familiar ringtone came from one of the three bodies.

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