The father of one of the rebels died of shock after hearing that his son was trapped in the hideout.
The two militants were killed in Kundalan village after they opened fire on security forces, triggering a gun battle.
“The identity of the militants is being established,” a police officer said.
As civilians poured out of their homes and clashed with the security forces during the fighting, security personnel fired tear gas and pellet gunshots to prevent any disruption in the operations, leading to at least 20 injuries.
A doctor at a hospital where the injured civilians were shifted said one of the youths had a gunshot injury in his leg.
Two soldiers, including a Junior Commissioned Officer, injured in the gunfight were shifted to the Army’s 92 Base Hospital here.
Muhammad Ishaq Naikoo, the father of Zeenat, who had just joined the militant ranks, was declared dead on arrival at a hospital. Naikoo suffered cardiac arrest.