Indian army spokesman S.N. Acharaya said no Indian forces had been wounded in the clashes, the Chinese state-run news agency Xinhua reported.
Acharaya said the battle began Sunday night after Pakistani forces fired on Indian army positions in Hamirpur and Balakote, about 115 miles southwest of Srinagar, the summer capital of Indian-controlled Kashmir.
Mortars, rocket-propelled grenades and automatic weapons were used by both sides, officials said.
Some medium range shells and rockets fired by Pakistani troops reportedly fell in civilian areas around Mankote and Mendhar.
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