The encounter broke out between security forces and militants in Bomai village of Sopore, 55 kms from here, following an anti-militancy operation, the sources said.
As per intelligence inputs, a group of five militants were believed to have taken shelter in the village and an operation was launched to neutralise them, they said.
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When the security forces moved towards the target houses, militants hiding there opened fire and in the ensuing encounter, two militants were killed, the sources said.
They said the operation in the village was going on.