Troops noticed some suspicious movement of a large number of terrorists near the Line of Control (LoC) in Lacchipora area of Uri sector at around 7.00 pm on Sunday, the sources said.
School children also came out of their classrooms as parents started, making frantic calls to schools asking for the safety of their children.
The restrictions were imposed by the authorities as the separatist Coordination Committee had announced that it would form a human chain from Saddar court complex in Lal Chowk to High Court complex to protest the landing of Indian troops in the state on October 27, 1947.
A prominent social activist was on Wednesday shot dead by militants in Sopore township of north Kashmir's Baramulla district, police said.
A defence spokesman in Srinagar said alert troops noticed movement along the LoC in the afternoon in the Kalapahar area of the Uri sector and challenged the infiltrators. "The terrorists opened fire at the troops, which was returned, resulting in an encounter that is still on and so far bodies of five terrorists have been recovered," Lt Col JS Brar said.
Officials said more than five inches of snow has accumulated in the main Gulmarg bowl so far.
Colonel G S Sarna was killed in the encounter.
A police official said the curbs have been imposed to maintain law and order in view of the separatists call for a march to the three districts of Baramulla, Pulwama and Srinagar.
Chidambaram, who arrived in the north Kashmir town of Baramulla from Kargil in Ladakh region, took stock of the situation in Baramulla, Bandipora and Kupwara -- the three districts along the Line of Control (LoC) in the Valley which witnessed violent protests during the past four months.
The grenade was aimed at a paramilitary patrol party, but missed the target.
An army colonel was killed and two soldiers injured in a gunbattle with militants in Pattan area of Baramulla district of Jammu and Kashmir on Saturday.
Union Home Minister Amit Shah on Wednesday ruled out holding any dialogue with Pakistan and asserted that the Modi government will wipe out terrorism from Jammu and Kashmir and make it the most peaceful place in the country.
A 22-year-old civilian was killed allegedly in firing by security forces in a remote village of Baramulla district in north Kashmir, leading to protests in the area, official sources said on Friday night.
The meeting came after terrorists carried out a series of targeted killings in the Kashmir Valley that include non-Muslims, security personnel, an artist and local civilians.
Prime Minister Narendra Modi on Saturday said the decision to transform Jammu and Kashmir into a Union Territory is 'temporary' and the Bharatiya Janata Party-led government will restore the statehood to the region.
The Army and police immediately launched a search operation in the area to nab the militants.
In a joint operation, the army and the police in Baramulla district of Jammu and Kashmir apprehended a Jaish-e-Mohammad terrorist, who carried out an attack three months ago along with his three associates at an army camp near the Line of Control in Tanghdar area of North Kashmir's Kupwara District.
Dense to very dense fog engulfed the Indo-Gangetic plains, including Delhi, for the second morning on the trot on Tuesday, lowering visibility to 50 metres in the city and affecting road traffic and train movement.
Three militants were killed in a fierce gunbattle with security forces in a village at Sopore in north Kashmir's Baramulla district on Monday.
Former chief minister Mehbooba Mufti and Jammu and Kashmir Police engaged in a Twitter spat on Wednesday after she claimed that she was placed under house arrest to prevent her from visiting an area in north Kashmir.
The voluminous report has proposed redrawing of the Anantnag Parliamentary seat by including Rajouri and Poonch from the Jammu region, besides carrying out massive changes in the Kashmir division, they said.
A Lashker-e-Tayiba operative, who was allegedly managing finances for the Pakistan-based militant outfit in north Kashmir's Baramulla district was arrested Sunday, police said in Srinagar.
"Give up arms and come for talks or our forces will hunt you down," the home minister said in election rallies in Jammu and Kashmir.
A top Lashkar-e-Tayiba militant was killed in a six-hour-long gun-battle with security forces in Sopore town of north Kashmir Baramulla district, the police said.
A sarpanch was gunned down by unidentified militants in north Kashmir's Baramulla district on Sunday evening. Today's killing is yet another in a series of relentless attacks against the panches and sarpanches in the valley who have been clamouring for security by the administration.
Barring a clash between protesters and security forces which left one person injured in Sopore, situation in strike-hit Kashmir Valley remained calm though restrictions were imposed in parts of interior city where Hurriyat Conference had planned to hold a meeting.
"At about 9.15 pm, a police party at Mirgund in Pattan signalled a cab to stop but two militants inside the vehicle started firing, which was retaliated," a police official said.
Mehraj Din Malla was abducted on Wednesday morning, following which, police had launched a search operation in the area.
Last week's heavy snowfall seems to have affected electioneering in Kashmir. South Kashmir's Anantnag and the prestigious Srinagar constituencies go to polls on April 24 and April 30 in the five phased Lok Sabha polls in the state.
This was the lowest minimum temperature recorded in the city since 1991, when the mercury had fallen to minus 11.4 degree Celsius.
Four terrorists and a soldier were killed in an overnight encounter in the Handwara area of north Kashmir's Kupwara district, police said on Thursday.
Security forces gunned down two local militants of the Hizbul Mujahideen outfit in north Kashmir's Baramulla district on Tuesday evening.
Lt Gen Dua called on Governor Vohra and briefed him about the security situation and the Army's preparedness to deal with any arising exigency.