PUNE, India, (Reuters) - Security officials were investigating the possible involvement of Pakistan-based elements in a bomb blast in western India that killed nine people, but New Delhi said talks with Islamabad later this month would go ahead. The bomb, left in a backpack at the popular German Bakery in the city of Pune on Saturday, wounded 60 and appeared to target Indian and foreign tourists. Senior internal security sources, who declined to be named, said the focus had fallen on Pakistan-based group Lashkar-e-Taiba (LT), which has been blamed for the Mumbai attacks, and a local group called Indian Mujahideen (IM) because both had been behind bombings in India in the past. As of now our line of investigation is towards the possible involvement of LT ... a sleeper module of the Indian Mujahideen could also be involved, a senior interior security official overseeing the investigation told Reuters. Nothing is ruled out, nothing is ruled in. The investigation is in progress, Indian Home Minister Palaniappan Chidambaram said. On Friday, India and Pakistan agreed to high-level talks in New Delhi on Feb 25, suspended after the Mumbai attacks. Any sign of Pakistani involvement in the Pune attack would further worsen relations between the two N-rivals and further destabilise a region overshadowed by war in Afghanistan. The Pune blast also appears similar to a wave of bombs that hit Indian cities in the year before the Mumbai attacks. Police blamed most of those attacks on home-grown Muslim groups like the IM, but Hindu militants were also accused of masterminding some of the bombs. The bomb appears to have been not a sophisticated one that could have required any special training. The expertise involved could have been locally acquired, said B Raman, director of the Chennai-based Institute For Topical Studies. An Italian woman and an Iranian man were among those killed. The 12 foreigners injured included Iranians, Yemenis, Sudanese, Nepalis, a Taiwanese and a German, Police Commissioner Satyapal Singh told reporters. We are awaiting forensic and intelligence reports. It is too early to say anything now, Singh said. Authorities have warned of renewed threats of attacks on Indian soil and stepped up security in recent months. Airports and railway stations across the country have been put on high alert after the blast and extra security given to the South African and Indian cricket teams in India. Monitoring Desk adds: Indian Prime Minister Dr Manmohan Singh reviewed the situation arising out of the bomb blast. The Indian Home Minister briefed the PM on his visit to Pune and on the state of investigations. The Prime Minister directed that the union and state governments should take coordinated and effective action to speedily investigate the matter so that the culprits responsible for this heinous act are identified and brought to justice at the earliest. He also announced relief from the Prime Ministers National Relief Fund of Rs200,000 to the next of kin of those deceased and Rs100,000 to those injured.