SRINAGAR (Reuters) - Indian and Pakistani troops exchanged gunfire for a second straight day on Saturday as ties plummeted between the two nuclear-armed neighbours after an attack on tourists blamed on Pakistani militants killed 26 in India's Kashmir region.

A day after the U.N. appealed for restraint following Tuesday's deadly attack in Indian-administered Kashmir, India reported an exchange of fire across the de facto border in the disputed region.

Relations between India and Pakistan are cratering following a deadly militant attack in Indian-administered Kashmir that has sparked tit-for-tat reprisals and raised fears of another military escalation between the nuclear-armed rivals.