"Indian Army proactively dominates LoC and we want peace and tranquility in Jammu & Kashmir", he added.
The Sensex dropped 188 points or 0.61% and settled at 30,383.25, while the Nifty50 dropped 52.90 points or 0.56% to settle at 9,385.35.
A video released by the Army showed Pakistani posts being bombarded with artillery fire.
"As part of our anti-terror strategy, punitive fire assaults are carried out from time to time".
The goal of the engagement was to "bring down the number of terrorists in Kashmir so that local youth are not encouraged to take up arms", Major General Narula said.
Infiltration is likely to increase with the melting of snow and the opening of passes across the LOC. The weapons used in the assault were rocket launchers, anti-tank guided missiles, automated grenade launchers and recoilless guns, Army sources told ANI.
In a counter offensive measure, the Indian army has carried out a "punitive assault" across the LoC, damaging Pakistan army posts which were reportedly aiding infiltrators at Naushera sector in Jammu and Kashmir. The encounter, which lasted more than 24 hours, ended on Sunday evening and left seven people dead, including three soldiers. The surgical strikes were direct military response for the deadly attack on the Army base in Uri in which 19 military personnel were martyred.
According to reports, the army on Saturday engaged a group of terrorists who were trying to infiltrate and cornered them around the Kisan post in the Naugam sector.