At least nine people were injured, including two Indian security personnel, when a grenade was launched at a Central Reserve Police Force (CRPF) patrol group in the Shopian district of southern Kashmir.
The grenade attack took place around 11:40 am, the Press Trust of India quoted a police official saying.
The official said the injured were admitted to the Shopian district hospital while security forces search for the militants.
The attack comes even as security forces battle militants who are holed up inside a building in the Pampore district of the state. The encounter has been going on since Monday morning after an unspecified number of militants stormed into the Entrepreneurship Development Institute (EDI) and took up positions inside one of the buildings.
An Indian soldier was injured in the gunfight. The Army's para commandos have been called in but have avoided rushing in to prevent casualties. Intermittent firing and explosions have been heard from inside the building.