Security forces launched a cordon and search operation in Drabgam area of Pulwama district after receiving information about presence of two to three militants in the area, a police official said.
As the security forces were closing in, the militants opened indiscriminate fire on them, the official said.
Two soldiers were injured in the firing, an Army official said, adding the cordon has been strengthened and an operation to flush out the militants was going on.