Monday's shooting in Lal Chowk triggered panic, sending tourists and shopkeepers in a tizzy with everyone running for cover in the adjoining by-lanes.
A senior police officer said terrorists shot at Mohammad Afzal Khan, a resident of Sopore, targeting his forehead with a single bullet.
Khan was rushed to SMHS hospital where he succumbed to the grievous head injury.
Witnesses said they heard a gunshot sound and thereafter saw a man falling down on the pavement.
"Then everyone started running helter skelter," a shopkeeper said.
Senior police officers rushed to the spot.
Security forces are searching the park adjacent to the site of the shooting. No group has yet claimed responsibility for the killing.
Image: Security personnel taking Khan to the hospital
Photograph: Umar Ganie/Rediff.com
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