At least two members of Islamist sect Boko Haram were killed and 26 arrested in Nigeria's Borno state for their alleged involvement in the killing of two Indian nationals, Xinhua reported.
The group members were arrested Friday in Maiduguri, capital of Borno, military authorities said.
Lt Col Sagir Musa, spokesperson of the Joint Task Force (JTF), said the raid was carried out at Bula-Bulin and Kasuwan Shanu areas of Maiduguri.
Two AK-47 rifles, machettes, explosive devices and blood-stained clothes were discovered during the raid of their hideouts.
On July 25, two Indian nationals -- Shanker Saha and Bokul Chander Mondal, both 35 -- were killed and a third named Biresh Yadav, 43, was seriously wounded after an unprovoked armed attack on the premises of M/s Adebar Trades and Industries Ltd in Maiduguri.
Xinhua said the Indians worked with the Gum Arabic Factory in Maiduguri.
The Indian high commission in Nigeria expressed shock over the incident and asked Nigerian authorities to investigate the attack.
Boko Haram gunmen are known to use motorbikes to assassinate security officers and politicians.
The group's official name is Jama'atu Ahlis Sunna Lidda'awati wal-Jihad, which in Arabic means "People Committed to the Propagation of the Prophet's Teachings and Jihad".
But residents of Maiduguri, where it was formed in 2002, dubbed it Boko Haram. Loosely translated from the local Hausa language, this means Western education is forbidden.
Residents gave it the name because of its strong opposition to Western education, which it sees as corrupting Muslims.