The military operations chiefs of India and Pakistan will discuss on Monday the next steps for the nuclear-armed neighbours after a ceasefire returns calm to the border, following their fiercest fighting in nearly three decades.

The military operations chiefs of India and Pakistan are set to discuss on Monday the next steps for the nuclear-armed neighbours, India said, as a ceasefire returned calm to the border, and their equity markets edged higher.

After four days of fighting, India and Pakistan agreed to a May 10 ceasefire, but within hours explosions rang out in border towns.