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.

India has yet to present clear evidence of who conducted the attack on April 22nd that killed 26 mostly Hindu men in Pahalgam, a popular tourist spot in the Muslim-majority region. But local police are searching for two Pakistani suspects and one Indian.

India said it test-fired missiles, showcasing its capability to hit distant targets, amid growing tension with Pakistan.