An exchange of fire broke out between terrorists and security forces at Kokernag in south Kashmir's Anantnag district on Tuesday.
Further details are awaited.
Anantnag is one of the most sensitive districts in the Valley.
Eight terrorists have been neutralised and at least two have been captured by the security forces from Kashmir in May alone.
Security forces had got a major breakthrough when one of the most wanted terrorists, Zakir Musa, was killed in an encounter in Tral in Pulwama on May 24.
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