Militants on Sunday shot at two policemen in Srinagar's busy city centre, killing one.

Lal Chowk was bustling with shoppers ahead of the Eid festival.

"The militants shot from close range. One policeman succumbed to his injuries in the SMHS Hospital. Doctors are battling to save the life of the other cop who was hit on the head," Superintendent of Police Anand Jain said.

"We are carrying out searches to locate the assassins," Jain said.

Traffic into the city centre was diverted and shoppers deserted the area within minutes.

No group has yet claimed responsibility for the attack.