A group of two to three armed persons were seen moving towards this side of LoC in Keri forward area around 1100 hours, PRO Defence S N Acharya said.
As they were moving ahead, Indian troops guarding the borderline challenged them and fired on them, he said, adding that they also fired back resulting in exchange of gunfire.
The infiltration bid was foiled, he said.
SSP Rajouri Mubasir Lattifi said two ultras were killed in the exchange of fire and the operation is still on.