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 called India's actions “irresponsible" and canceled visas for Indian nationals, suspended all trade with India and closed its airspace to Indian aircraft.

Pakistan has warned it could suspend a critical peace treaty with India in the wake of recent violence in the disputed province of Kashmir, with tensions between the two nations continuing to escalate.