An encounter broke out between militants and security forces during a Cordon and Search Operation (CASO) in this south Kashmir district early on Monday, a police spokesman said.
He said acting on a tip-off about the presence of militants, troops of Rashtriya Rifles (RR), Special Operation Group (SOG) of Jammu and Kashmir police launched a joint search operation in a village in Anantnag early this morning.
All the exit points were sealed, he said, adding when the security forces were moving towards a particular area in the village, militants hiding there opened indiscriminate firing with automatic weapons.
The fire was returned ensuing in an encounter, he said, adding that the operation was going on when the reports last came in.
Meanwhile, internet mobile service was suspended as a precautionary measure to prevent spread of rumours.
Additional security forces and state police personnel have been deployed outside the cordoned off areas to prevent demonstration, official sources said.