Indian officials said elite troops crossed into Pakistan-ruled Kashmir on Thursday and killed suspected militants preparing to infiltrate and carry out attacks on major cities, in a surprise raid that raised tensions between the nuclear-armed rivals.
Pakistan said two of its soldiers were killed in exchanges of fire, but denied India had made any targeted strikes across the de facto frontier that runs through the disputed Himalayan territory.
An Indian military source and a government official said Indian special forces crossed the heavily militarized border - the so-called Line of Control (LoC) - by foot just after midnight and hit about half a dozen "launching pads", where suspected militants were preparing to sneak across.
The official said troops killed militants numbering in the double digits, and that no Indian soldier was killed.
An army official based in Indian-controlled Kashmir said two Indian soldiers were wounded while returning from the raid - one stepped on a landmine and another was shot.
Pakistan also captured an Indian soldier on its side of the border, military officials from both countries said. An Indian army official said the soldier had inadvertently crossed the frontier and had nothing to do with the earlier raids.
Thursday's strikes mark a rare public announcement by India that it had launched a military operation across its de factor border with Pakistan.
They followed Prime Minister Narendra Modi's warning that those India held responsible "would not go unpunished" for a Sept. 18 attack on an army base in Uri, near the Line of Control, that killed 18 soldiers.
The strikes raised the possibility of military escalation between the neighbors that could wreck a 2003 Kashmir ceasefire.
India evacuated people from villages within 10 km (six miles) of the de facto border in the Jammu area as a precautionary measure.
Share markets in India and Pakistan fell after India announced the strikes at a hastily called press conference.