The clashes had started today morning after two terrorists were killed during an overnight encounter with the security forces at a house in the area. The police, army and the CRPF had started the operation at Shopian's Wanipora village on Monday evening after they received a tip-off about the presence of terrorists.
In the encounter, which went on through the night, two terrorists were killed. The police said one of them was identified as Ali, a Jaish-e-Mohammad operative from Pakistan.
Police said security forces opened fire after they came under intense stone pelting. A senior officer said the condition of the people injured during the clash is stable.
This is the second time a civilian died in Kashmir Valley in the last three days.
On Sunday, a taxi driver, Asif Iqbal, was killed in Kupwara district of north Kashmir. The man had been caught in the cross-fire during an anti-terror operation, the army said.
Initial investigation showed the security personnel -- who had had laid an ambush in following a tip-off about the presence of terrorists in the area -- had fired at Asif Iqbal, mistaking him for a terrorist. The army is investigating the issue. The government has also ordered a magisterial probe into the killing.
The death had triggered protests and clashes in the area.