An Army jawan was also killed in the encounter that erupted at Padgampora during a cordon and search operation, officials said.

Additional Director General of Police, Kashmir Vijay Kumar said the killer of Kashmiri Pandit was neutralized during the gunfight.

He identified the slain as Aqib Mustaq Bhat of Pulwama.

He was associated with "The Resistance Front" and was an “A” category militant.

“Killed terrorist initially worked for HM ( Hizbul Mujahideen) terror outfit, nowadays he had been working with TRF. Killer of late Sanjay Sharma neutralized,” ADGP Kashmir said.

On Sunday morning , Sanjay Kumar, a Kashmiri Pandit working as a security guard at a bank was shot dead by militants near his home at Achan village in Pulwama district. This was the first targeted attack on Kashmiri Pandits in the Valley this year.

Soon after the killing, security forces stepped up anti-militancy operations across Pulwama and adjoining areas.

Police said the encounter erupted at Padgampora during a cordon and search operation in the area following an input about the presence of militants.

"As the joint teams approached the suspected spot, the hiding terrorists opened fire, triggering a gunfight during which a militant was killed," a security official said.

Security officials said in the initial gunfight two soldiers were also wounded and one of them later succumbed to injuries. The identity of the slain soldier could not be established immediately.

(With UNI inputs)