There were no reports of explosions or projectiles overnight, with the Indian army saying Sunday was the first peaceful night in recent days along their border, although some schools remain closed.
Hindu-majority India and Muslim Pakistan both rule part of the Himalayan region of Kashmir, but claim it in full.
A spokesman for Pakistan's military denied any violations.
The Indian army said both sides' director generals of military operations would speak by telephone in the evening, a delay from an initial timing of noon (0630 GMT), but gave no reason.
On Monday, India reopened 32 airports it had shut during the clashes, with the Airports Authority of India saying in a statement they were available for civil operations. Pakistan had reopened its airspace on Saturday.
Dharmendra Singh, 34, a driver in the city sacred to Sikhs, said there was no fear among residents, though the situation was not as serious as in the northern city of Jammu.
The arch rivals had targeted each other's military installations with missiles and drones, killing dozens of civilians as relations turned sour after India blamed Pakistan for an attack that killed 26 men.
India said it launched strikes on nine 'terrorist infrastructure' sites in Pakistan and Pakistani Kashmir on Wednesday, but Islamabad has said those were civilian sites.
Pakistan's international bonds rallied sharply, adding as much as 5.7 cents in the dollar, Tradeweb data showed.
Pakistan's benchmark share index closed up 9.4% on Monday, while India's blue-chip Nifty 50 index closed 3.8% higher in its best session since February 2021.
India, which says disputes with Pakistan have to be resolved directly by the neighbours, has in the past rejected the involvement of any third party.
In Beijing, the foreign ministry said China was willing to maintain communication with both its neighbours, and play a “constructive role in achieving a comprehensive and lasting ceasefire” and maintaining peace.
Some in the region remained concerned despite the ceasefire.
“After blasts all over the city (Jammu), I am scared. I am going to stay in Delhi till I am sure the agreement is binding on Pakistan,“ added Padam, who declined to give his second name.
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