In a major success for the security forces, Bhat was gunned down along with another militant, at Soimoh village in Tral of Pulwama district, about 36 km from Srinagar, during a cordon and search operation following specific information about the presence of terrorists there.
The state's police chief S P Vaid said Bhat was among the two militants killed in the encounter.
The Army also foiled a major infiltration bid from across the Line of Control in Rampur sector, killing six militants.
There was a fierce exchange of fire after the troops noticed some "suspicious movement" in the early hours. On being challenged, the militants opened fire, and in the encounter that ensued, six infiltrators were felled, the Army said.
A civilian was also reported dead in cross-fire at Soimoh village during the encounter in which Bhat was killed. However, some locals claimed he was killed in firing by the security forces on protesters who took to streets and fought pitched battles with men in uniform after the encounter.
Mobile internet services have been suspended across the valley to prevent rumour-mongering, officials said.
Violence erupted at more than 50 places in the valley after the news of Bhat's killing spread like wildfire.
Stone-pelting youth were out on streets in Srinagar, Tral and several big and small towns in the valley, attacking security forces.
According to an official at sub-district hospital in Tral, 19 injured people were admitted there.
While six persons had bullet injuries, 13 others were hit by pellets.
Five persons were injured in Shopian district during similar protests, he said adding the number of those injured across the valley might go up by the end of the day as clashes were reported from many parts.
Five police personnel were also wounded in clashes in Srinagar and have been hospitalised, the official said.
As the situation in the valley worsened, jittery people rushed back to their homes in Srinagar, leading to traffic snarls, and schools were close three hours ahead of schedule.
"We condemn the use of brute force against unarmed civilians, injuring hundreds of them and call for a strike on Sunday and Monday," separatist leaders Syed Ali Shah Geelani, and Mirwaiz Umar Farooq, and JKLF chief Yasin Malik, said in a statement in Srinagar.
They asked people in the valley to turn up in large numbers in Tral on Tuesday to pay tributes to the slain militants.
Mobile internet services were suspended in the valley as a precautionary measure, but BSNL's broadband service was functioning normally, official said.
Authorities have decided to impose curfew in areas under seven police stations in Srinagar tomorrow to prevent violent protests.
"Curfew will be imposed tomorrow in seven police station areas of the city as a precautionary measure," District Magistrate Srinagar Farooq Lone told PTI.
He said the police station areas where curfew will be in force are Khanyar, Kralkhud, Maharaj Gunj, Maisuma, Nowhatta, Rainawari and Safakadal.
Lone said educational institutions in the city will remain closed on Monday.
Meanwhile, a spokesman for the Northern Command said in Jammu that "relentless" operations by security forces had resulted in the killing of 10 militants in the last 24 hours.
"Relentless operations by security forces have defeated desperate attempts by Pakistan and Pakistan-sponsored agents to spread terror in the state in the run up to the holy month of Ramzan," the spokesman said.
Disclaimer: No Business Standard Journalist was involved in creation of this content
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