Shooting continued for hours after military and police sources reported that four soldiers, two militants and a civilian were killed in Pulwama district, south of Srinagar, the main city in Indian-occupied Kashmir (IoK).
One soldier and one civilian were also critically wounded in the shootout as occupying troops launched a search operation in Pulwama district where the suicide bomber struck on Thursday.
"Four soldiers were killed during the shootout and another one is injured," a senior Indian police officer told AFP on condition of anonymity.
The official claimed the soldiers fired warning shots and the militants fired back, unleashing the firefight in the district 40 kilometres south of the Indian-occupied territory's main city of Srinagar.
Occupying forces launched a massive hunt for militants in the disputed region after Thursday's bombing that India has blamed on Pakistan.
Modi warns of ‘strong reply’ to Kashmir attack as India withdraws Pakistan’s MFN status
An explosives-packed van rammed a convoy transporting 2,500 security forces in the deadliest attack in IoK in 30 years. The militant group JeM claimed responsibility for the bombing.
New Delhi accused Pakistan and has vowed to retaliate to avenge the deaths.
Within hours of the attack, New Delhi withdrew trade privileges for Islamabad and ended police protection to four Kashmiri leaders.
Pakistan has denied a role in the attack, adding the JeM is a proscribed "terrorist organisation".
The shock attack has fuelled anger across India with demonstrations and TV news channels demanding military action against Pakistan.
More protests have been planned Monday, with trade unions calling for a nationwide shutdown by shops and small businesses.
Protesters in New Delhi on Sunday burned effigies of Pakistani and JeM leaders while attacks on Kashmiris were reported in different cities.
India detains 23 men with suspected links to group behind Pulwama attack
A Kashmiri man was beaten by a mob in New Delhi that accused him of chanting anti-India slogans. He was later detained by police. A curfew remained in force for the fourth day in Jammu city, in the Hindu-majority part of occupied Kashmir, where mobs attacked and set fire to properties belonging to Kashmiri Muslims.
Mobile internet has been shut down across the state. IoK is the world's most militarised zone with some 500,000 Indian troops deployed to fight a rebellion that broke out in 1989. Scores of armed groups are now involved.
Tens of thousands of people, mainly civilians, have died in the conflict. Violence has spiked since 2016 with almost 600 killed last year, the highest toll in a decade.
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