The ceasefire has halted what some analysts say was the most serious fighting between the two countries since a 1971 war. But India's recent suspension of a key water-sharing treaty remains in place.

Blasts were heard in Srinagar and Jammu and projectiles and flashes were seen in the night sky over Jammu, similar to the events of the previous evening, according to authorities, residents and Reuters witnesses.

People in Kashmir say they are relieved but uneasy after India and Pakistan agreed to a ceasefire. The deal was intended to defuse the worst military confrontation between the two countries in decades.