Modi was accompanied by External Affairs Minister Sushma Swaraj, Foreign Secretary Sujatha Singh among others during the talks with Sharif, who arrived here to attend Modi's swearing-in yesterday.
The two leaders had a firm handshake and posed for photographers before heading towards the meeting room for talks at the ceremonial Hyderabad House.
According to sources, no breakthrough was expected during the meeting which will provide the two leaders an opportunity to cultivate personal relations which may go a long a way in reducing tensions.
Ahead of his meeting, Sharif had yesterday said he was carrying a message of peace and intends to pick up the threads with India's new leader Narendra Modi from where he and then Prime Minister Atal Bihari Vajpayee left off in 1999.
Sharif's visit is seen as significant by political observers here given that hardline elements in Pakistan have expressed their unhappiness over his responding to the invitation positively.
Sources said it is expected that the Pakistan leader will also extend a formal invitation to Modi for a visit.
Sharif will leave for Pakistan later in the day.
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