"The separatists attacked a road observation party and martyred two CRPF (Central Reserve Police Force) jawans," deputy inspector general of police, Nitish Kumar, told AFP.
The attack was carried out in Hatmulla village, 40 kilometres (25 miles) south of the main city of Srinagar and not far from the area where separatists injured 15 civilians by hurling a grenade near a police station on Saturday.
Read: Separatists kill three policemen in Indian Kashmir
Kashmir has been divided between India and Pakistan since they gained independence from Britain in 1947. Both claim the Himalayan territory in its entirety.
Several separatist groups have been fighting hundreds of thousands of Indian forces in the region, demanding independence or a merger of the territory with Pakistan.
Read: Pakistani flags waved at Hurriyat rally in Indian Kashmir
Tens of thousands, mostly civilians, have died in the fighting since 1989 when an armed revolt against Indian rule erupted in the Indian-administered part of the territory.
Violence has steadily declined during the last decade but armed encounters between separatists and government forces occur regularly.
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