Indian shares fell further in a highly volatile session after the Indian army reported overnight drone and munitions attacks by Pakistani forces, stoking fears of escalation that market players had earlier downplayed, Reuters reports.

The Nifty 50 was down 1.18 per cent at 23,983.3 and the BSE lost 1.12pc to 79,443.08 as of 10:53am IST (10:23am PKT).

Twelve of the 13 major sectors declined. The broader, more domestically focused small-caps and mid-caps fell 1.8pc and 1.2pc, respectively.

The volatility index, often referred to as the market’s fear gauge, was set for an eighth straight session gain and hit its highest level in over a month.

“The extent of escalation was not anticipated by the market,” said Ambareesh Baliga, an independent market analyst.