Two terrorists who were holed up inside a residential building in South Kashmir's Tral have been killed in an encounter in south Kashmir's Tral. A policeman has also died and three security personnel have been injured in a gunbattle that started on Saturday evening and lasted for over 24 hours. Blasts were heard and security personnel exchanged heavy fire with the terrorists on Saturday. The area was quickly cordoned off. Police said the terrorists were still firing intermittently till Sunday morning even though the house which the terrorist had used as a fortified bunker was demolished.