Gunfight rages in the heart of Anantnag main town's lal Chowk area as two militants are believed to be holed up.
As per police sources the forces lay siege around 11:30 last night after which searches were conducted.
Locals said the intermittent firing is going on since 4 am.
Meanwhile, curfew has been imposed in the town and mobile internet blocked in district.
Police sources said several youths have also been picked up overnight to curb the protests near encounter site.