In a photo-op that appeared to belie any misunderstanding or animosity between the two neighbours, Modi and Sharif kept their handshake for several seconds and chatted, smiling all the while.
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Modi and Sharif had shaken hands and interacted briefly during the retreat at the Dhulikhel earlier in the day.
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The two had studiously ignored each other during the summit Wednesday, the sixth anniversary of the 2008 Mumbai terror attack that India has blamed on Pakistani elements.