The explosions in Amritsar - the first heard in the three-day-old conflict between the nuclear-armed neighbours - could mark a further expansion in the hostilities that have
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“Drones have been sighted ... They are being engaged,“ said an Indian military official who asked not to be named.
There was no immediate comment from Pakistan which dismissed Indian accusations that it had launched attacks on the same area on Thursday night.
Pakistan dismissed Indian accusations that it was involved. Both countries have exchanged cross-border fire and shelling and sent drones and missiles into each other's airspace.
Tourists and villagers fled border zones, residents rushed to stockpile food and people were told to stay indoors in cities in Kashmir and beyond. India's cricket board on Friday suspended the IPL - the sport's richest tournament - and the Pakistan Super League postponed its remaining eight matches.
CLASHING ACCUSATIONS
India responded with drones on targets in Pakistan and destroyed one air defence system, Indian Air Force officer Vyomika Singh told a media briefing.
In Pakistani Kashmir, officials said heavy shelling from across the border killed five civilians, including an infant, and wounded 29 others in the early hours of Friday.
Sirens had blared for more than two hours earlier on Friday in in Amritsar, which houses the Golden Temple revered by Sikhs.
“We really wanted to stay but the loud sounds, sirens, and blackouts are giving us sleepless nights. Our families back home are worried for us so we have booked a cab and are leaving,“ said a British national who did not want to be named.
Further south in Bhuj in Gujarat, authorities said tourist buses had been kept on standby in case they needed to evacuate people near the Pakistan border.
Indian shares fell for a second straight session on Friday, losing about $83 billion in market value, with both key stock indexes losing 1.1%.
Pakistan's benchmark share index closed 3.52% higher with traders crediting a fall off in violence in Pakistani territory after Thursday's clashes.
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