Hardline separatist leader Syed Ali Geelani has, however, dismissed the change of guard in India, saying New Delhi's Kashmir policy won't change no matter who the prime minister is.
The man on the street in the Kashmir Valley is also looking forward to better India-Pakistan relations under Modi.
"He has done the right thing by inviting Sharif... This will help undo the impression that Modi will rule India as a hawk," said Shabir Ahmad, a 39-year-old resident of Narwara area in Srinagar.
Others believe that Modi would work for peace between the two countries but for that the Kashmir problem would have to be addressed.
"Let us not play the ostrich. Kashmir is the main problem. Anybody who wants to seriously apply himself to better India-Pakistan relations must strive to work for the resolution of this basic problem," Farooq Ahmad, 53, a bank officer, pointed out.
As a Modi-led National Democratic Alliance (NDA) government prepares to get into the driving seat, Kashmiris say Modi could disprove all they have heard about him -- from his rivals.
