Gunfight erupted in Karan Nagar area of Srinagar on Monday morning after militants fired at the paramilitary CRPF men during a search operation.
Reports said that two militants who had taken cover inside an abandoned building near a CRPF camp in Karan Nagar opened fire after forces launched searches in the area.
The camp is located near the SMHS hospital.
CRPF spokesman Rajesh Yadav said that an alert sentry had earlier noticed suspicious movement of the militants.
Reports said that the sentry averted a possible militant attack by firing at approaching militants forcing them to flee.
Two militants carrying bags and AK-47 rifles were seen by the sentry approaching the camp of the 23 battalion of CRPF in Karan Nagar area around 4.30 am, they said.
Later, searches were launched around the camp periphery.
Heavy firing was going on at the time of filing of this report.