All shops and other commercial establishments are closed while public transport is off the roads in both the districts.
While two Lashkar-e-Toiba militants were killed in a gunfight with forces, a civilian was killed and dozens injured in the ensuing clashes.
Shopian district commander of LeT Wasim Shah was killed along with his associate Nasir Mir in the gunfight that raged in Litter village.
A civilian, identified as Gulzar Ahmad Mir, a resident of Allaypora was killed during the clashes.
Another civilian, identified as Muhammad Ashraf Mir with firearm injury was referred to SMHS hospital in Srinagar for specialized treatment.
Earlier, people took to streets after announcements were made over the public address system of the mosques asking them to come out.
The protesters pelted the forces with stones in Litter where the encounter is going on and adjacent villages to help the militants escape.
The forces responded by firing tear gas shells and resorted to firing.