Bashir Ahmad Bhat, a shopkeeper by profession and National Conference worker, was shot in the head by the militants at Batamaloo while he was leaving home for work, police said.
Bhat was rushed to SMHS hospital where the doctors declared him brought dead.
The assailants fled from the scene after the shooting incident, which triggered panic in the area.
This was second shooting incident in Srinagar city in less than a fortnight.
Militants made an abortive bid on the life of state Rural Development Minister Ali Mohammad Sagar at Nawab Bazaar in old city on December 11.
However, one constable was killed while three others were injured in the attack, which was claimed by Jamiatul Mujahideen outfit