Srinagar: Two militants were killed and three policemen including an SHO injured on Thursday in a gunfight that broke out on the outskirts of the city after a BJP leader was attacked, said police.

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Police sources said two militants were killed and three policemen including a station house officer (SHO) injured in the gunfight between the security forces and hiding militants in Balhama area of Khonmoh in outskirts of Srinagar.

Militants had attacked BJP leader, Muhammad Anwar Khan and injured his security guard Bilal Ahmad after which they fled and took shelter in Balhama village.

Security personnel immediately surrounded the village and a gunfight started there. 

Four houses have been damaged in the gunfight while police said firing exchanges have now stopped and searches are on to locate the bodies of two slain militants.

Authorities also announced suspension of rail service between Baramulla and Bannihal towns on Friday as a precautionary measure after intense clashes erupted between a stone pelting mob and the security forces at the gunfight site.