Terrorists attacked a wine shop located in the tourist hub of Dalgate in Srinagar on Thursday evening, killing one person and injuring four.
A senior police officer said the terrorists opened pistol fire at the wine shop located at the Jammu and Kashmir Tourism Development Corporation-owned hotel on the famous boulevard road running along the shores of the Dal Lake.
"The critically injured persons were rushed to the hospital. One of them, identified as Mushtaq Ahmad, succumbed to his wounds," the officer said.
The shooting in the heart of capital Srinagar triggered panic and tension in an area which remains abuzz with tourist activity.
The boulevard is lined with hotels and shops, which sell Kashmiri handicrafts and eateries.
There are only three wine shops operating in Srinagar, one located in the cantonment area and the two in the JKTDC-owned hotel in Dalgate. No other wine shop operates anywhere in the Valley.
Wine shops across Kashmir Valley had shut shop in response to a terrorist diktat in 1990.
"Search operations are going on in the area," the officer said.
No group has yet claimed responsibility for the attack.
Earlier this month, terrorists had attacked an Army convoy passing near a hotel in Srinagar. Two hotel employees were killed in the attack.