Honestly it's either or. I knew a couple of guys back in uni, one Indian the other Pakistani and they were really tight. Maybe it's just the narrow minded bigots who blindly hate another because of political history rather than treat them as an individual.
Also knew an Israeli and a Palestinian (weren't tight as such but were friendly with each other).
Honestly, it's a love-hate relationship. There's nobody they hate more than the other, at the same time there's nobody who understands them better than the other.
Even then, the hate is mostly political. It's politically beneficial to both countries to keep the hate flowing.