The risk of exposing a military still being modernized may constrain Prime Minister Narendra Modi as he weighs retaliation for a terrorist attack.

India's army chief will review security arrangements on Friday and visit the site of a deadly attack on tourists in Indian Kashmir earlier this week, with fears of fresh tensions with long-time rival and neighbour Pakistan spooking markets.

Pakistan violated the ceasefire along the Line of Control in Kashmir for the second consecutive night, prompting retaliation from the Indian Army. This follows the Pahalgam attack, where 26 civilians were killed by The Resistance Front,