At least 40 people, including Indian diplomats, have been killed and more than 100 others wounded in Afghanistan's capital city of Kabul, after an attack on the Indian embassy.

The Taliban denies it was behind the attack, while the Afghan government claims this was the work of what they deem 'regional influences'.

Hamid Karzai, president, said it was an abominable act of terrorism.

James Bays, Al Jazeera's correspondent in Kabul, reports.