  We present first neutrino induced events observed with a deep underwater
neutrino telescope. Data from 70 days effective life time of the BAIKAL
prototype telescope NT-96 have been analyzed with two different methods. With
the standard track reconstruction method, 9 clear upward muon candidates have
been identified, in good agreement with 8.7 events expected from Monte Carlo
calculations for atmospheric neutrinos. The second analysis is tailored to
muons coming from close to the opposite zenith. It yields 4 events, compared to
3.5 from Monte Carlo expectations. From this we derive a 90 % upper flux limit
of 1.1 * 10^-13 cm^-2 sec^-1 for muons in excess of those expected from
atmospheric neutrinos with zenith angle > 150 degrees and energy > 10GeV.
