One civilian was killed and four other persons, including two paramilitary Central Reserve Police Force troopers and two civilians, were wounded in a shootout at the city centre Lal Chowk in Srinagar on Tuesday morning.
A critically injured civilian succumbeed to his injuries in the hsopital later on Tuesday.
Police said unidentified militants fired several rounds from their automatic weapons at the paramilitary CRPF guarding the area.
"Two CRPF jawans and two civilians were injured in the shootout," a senior police officer said.
He said the injured have been rushed to the SMHS hospital for treatment.
The police and CRPF have now surrounded the area and massive searches are being conducted.
The firing triggered heavy tension in the city centre and its adjoining localities as shoppers and shopkeepers ran for security. Traffic has also been diverted.