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.

India and Pakistan troops exchanged fire in the Jammu and Kashmir region on Friday, according to officials in New Delhi, as relations between the nuclear-armed neighbors deteriorate after a deadly attack on tourists this week.

India’s military says Pakistani soldiers shot at Indian posts along the highly militarized frontier in disputed Kashmir for a second consecutive night.