Two militants were among four people killed in an encounter between the ultras and security forces in Old City of Srinagar early on Wednesday.
The slain militants, Mehraj Bangroo, Fahad Mushtaq Waza were associated with Lashkar-e-Taiba, police said.
A civilian named Rayees Ahmad, son of the house owner, was also killed in the encounter. Police said he was an over-ground worker.
Five policemen were injured in the gunfight that began after police and CRPF began a cordon and search operation in Fateh Kadal locality of Old City in the wee hours of the day, based on information about the presence of militants.
Later, one of the injured policemen, constable Kamal Kishore, succumbed.
The encounter took place close to the area where unidentified gunmen had killed two National Conference workers on October 5.
Locals took out a protest in the area against the killing of the civilian and the militants. Police has imposed restrictions in the area and snapped mobile internet in the Srinagar. All school and colleges were also shut in the city.
Condemning the killings, Hurriyat chairman said the owner of the house had suffered a cardiac arrest and houses had been razed to the ground.
Police also thrashed journalists who were covering the encounter after some police personnel asked them to leave.
The equipment of Hindustan Times photographer Waseem Andrabi was damaged in the melee.
President of Kashmir Press Photographer Association, Mukthair Khan said the policemen, led by a senior officer, without any provocation, started thrashing the journalists.
The Kashmir Press Club (KPC) condemned the incident, alleging that some of the journalists were injured in the security forces action.
Police officials were not immediately available for comments on the attack on journalists.