According to the police, the group started pelting the personnel belonging to the 53 Rashtriya Rifles with stones.
A police spokesman said someone from the crowd burst a fire cracker, which the army personnel took as a grenade blast.
"Someone among the miscreants also hurled a fire cracker towards the forces. The army men thought a grenade was hurled and retaliated. Two persons identified as Tanveer Ahmed and Mohammed Ibrahim Wani were injured in the incident. Tanveer later succumbed to injuries, while Ibrahim is stable," he said.
However, a defence spokesman, said the security forces opened fire after a mob tried to snatch their weapons.
"An army patrol was subjected to heavy stone pelting by the mob in Kondur village near Beerwah town at 1.15 pm. In no time, the numbers swelled and the intensity of stone pelting increased.
"Some stone-pelters tried to close in and snatch the weapons from the soldiers. Two persons were reportedly injured when the troops opened fire. One of the injured later succumbed to injuries," he said.
The police added that the situation in Beerwah town and adjoining areas was tense following the incident.
Malik detained after trying to march towards UNMOGIP office
Police on Fridya detained Jammu and Kashmir Liberation Front chairman Yasin Malik after he tried to lead a march towards the local office of United Nations in Srinagar to protest the 'killings in Kashmir'.
Malik was detained after he tried to lead a protest march to the office of the United Nations Military Observer Group in India and Pakistan (UNMOGIP) at Sonwar in Srinagar after congregational prayers, a police official said.
He said Malik along with his supporters assembled in Dalgate area of the city here this afternoon and tried to take out a protest march to the UN office.
Police swung into action and took him into custody, the official added.
Jammu Kashmir Liberation Front spokesman said Malik had gone into hiding as police had yesterday raided the outfit's office to arrest him.
Police had imposed a stringent curfew, barricades and razor wire were placed on every road leading towards Lal chowk and the UN office, the spokesman said.
But it failed to deter Malik and others to reach Buchwara Dalgate, he added.
The spokesman said Malik addressed people at the Jamia Masjid in Buchwara and later at the Buchwara Chowk as well.
The JKLF chairman had gone into hiding as state has 'choked' every space for peaceful programmes in Kashmir, he said.
Friday's protest strike and sit-in outside the UN office are actually a mark of protest against the 'spree of innocent killings in Kashmir', Malik said before being detained by the police.
He said it is obligatory on the international community, especially the UN, to take cognisance of these 'gross human rights violations'.
Earlier, the separatists had asked the people to march to Sonwar to participate in a sit-in outside the UN office.
However, police foiled the proposed march by sealing the roads leading to the UNMOGIP office and imposing strict restrictions in eight police station areas of the summer capital.
Representative image.
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