India launched military strikes on targets in Pakistan, both countries said on Wednesday, with Pakistan claiming it had shot down at least two Indian Air Force planes in response, in a major escalation between the nuclear-armed rivals.

India’s strikes come in retaliation to a militant attack that killed at least 26 people, mostly tourists, in the picturesque resort town of Pahalgam in Indian-administered Kashmir on 22 April. Militants opened fire on people who were visiting Baisaran, a mountain-top meadow three miles (5 km) from Pahalgam.

India's equity benchmarks ended little changed on Wednesday, coming off early losses, as rising geopolitical tension between India and Pakistan offset expectations of easing global trade tensions.