Indian markets fell on Tuesday amid concerns over increased tensions with Pakistan. The rupee fell to 71.16 to the dollar compared with Monday’s close of 70.9850.
The 10-year benchmark bond yield rose to 7.61 percent compared with 7.58 percent on Monday, while the broader NSE stock index declined 1.17 percent.
Shelling across the Kashmiri Line of Control has occurred frequently over the past few years but airspace violations by jets are extremely rare.
New Delhi said in 2016, following another large attack on Indian security forces in Kashmir, its troops crossed the LoC and carried out a “surgical strike” on suspected militant camps in Pakistan Kashmir. Islamabad denied anything serious occurred.
Indian Prime Minister Narendra Modi, facing a tight election in the next couple of months, has vowed a strong response to the Feb. 14 attack in the Pulwama district of Kashmir, the deadliest single assault on Indian forces in 30 years of insurgency in the Muslim-majority region.
The attack was claimed by Jaish-e-Mohammad (JeM), prompting India to accuse Pakistan of harboring the militant group. Pakistani Prime Minister Imran Khan denied his country was involved and offered to help investigate the attack if any credible evidence was provided.
JeM had also previously caused a crisis between India and Pakistan over a raid on the Indian parliament in 2001.
Indian television channels quoted unidentified government sources as saying multiple targets were destroyed during the air raid into Pakistan involving a dozen Mirage aircraft.
CNN News18 said it was a major strike involving 1,000 lb bombs and that the number of militants killed could be as high as 200. It did not say from where it got its information. The defence ministry reiterated it had no information.
“It’s a fitting reply to the horror we witnessed in Pulwama,” said former Indian air chief Pradeep Vasant.
“It’s an airborne surgical strike, we have upped the ante,” he said.
Mohammed Iqbal, a resident of Mendhar in India’s side of Kashmir, said there had been jets flying all night.
— CNBC contributed to this report.