There are fears the two nuclear-armed countries could be on the brink of war. It comes after India launched strikes on both Pakistan and Pakistan-administered Kashmir, killing at least 31 people.

“The recent conflicts between India and Pakistan in the last decade have been short-lived, but this one seems to be taking a serious turn,” said the Mumbai-based Baliga. “As of now, it's a ‘wait and watch’ for investors.”

Pakistan returned a captured border guard to India on Wednesday, in a fresh sign of detente after a ceasefire ended four days of conflict between the nuclear-armed rivals.