A jawan was killed and two others sustained bullet injuries after terrorists attacked the Central Reserve Police Force (CRPF) party at Batmaloo in Jammu and Kashmir's Srinagar on Monday.
The security forces have now cordoned off a shop where terrorists are suspected to be hiding.
More details in the incident are awaited.
In recent months, the state has witnessed a huge spurt in terror activities.
On Sunday, three Lashkar-e-Taiba (LeT) terrorists were gunned down in an ongoing encounter in Wani Mohalla area of Kulgam's Khudwani.
On July 13, one CRPF personnel was killed and another seriously injured in a terrorist attack in Anantnag's Sheer Pora.