New DELHI , India ( CNN ) -- Indian border guards fired four rockets into Pakistan on Saturday in what they said was retaliation to a similar fire from the other side . Pakistan denied that claim . Two unexploded rockets were traced after midnight near an Indian outpost along the border dividing the Punjab region between the two countries , said K. Srinivasan , a deputy inspector-general of India 's Border Security Force . `` We have standing instructions to retaliate and retaliate heavily , '' he said , adding that Indian borders guards also fired about 50 gunshots . The firing has stopped as of now , he said . But a spokesman for the Pakistan Rangers said India 's allegations were false . Nadeem Raza said that an explosion was heard at about 11:30 p.m. , after which Indians fired mortars into Pakistani territory . Saturday 's skirmish came a day after a long gunfight ended between Indian security forces and militants in Srinagar , the summer capital of India 's Jammu and Kashmir state . The border between India and Pakistan is disputed in the Kashmir region , where India accuses Pakistan of fueling an insurgency . The two nations have fought three wars over the territory since their independence in 1947 and routinely exchanged fire along the border , known as the Line of Control , until a 2003 ceasefire agreement . But tensions between the two South Asian rivals , both nuclear powers , escalated after the deadly siege on Mumbai in November , 2008 . More than 160 people were killed in the Mumbai assault , which derailed the peace process . The Indian government hinted Friday that Pakistan was behind this week 's attack in Srinagar . `` The two militants who were killed were in communication with their handlers outside India , '' said a statement issued by Home Minister P. Chidambaram . `` The incident highlights the fact that the country , especially Jammu and Kashmir , remains vulnerable to militant attacks sponsored by forces from across the border . '' Chidambaram 's comment echoed India 's allegations that the terrorists who laid siege to Mumbai were in touch with their leaders in Pakistan by phone . CNN 's Harmeet Shah Singh and journalist Umar Aziz Khan contributed to this report .
Indian border guards fire about 50 rockets into Pakistan along Kashmir region border . Pakistan claims attack in retaliation for similar attack ; Pakistan denies that claim . Incident follows gunfight ended between South Asian forces , militants in Punjab .