"Suspicious movement was noticed by troops near the fencing along the Line of Control (LoC) in Keran sector around midnight. The intruders were challenged leading to a gunfight," a senior army official said.
"We have also recovered three AK rifles, 12 magazines, 300 rounds, two UBGL grenades and other war-like stores from the spot," the official said.
He said the militants were cutting the fencing erected along the LoC when the troops detected their activity using night vision devices.
The infiltration of militants along the LoC in Kashmir has increased over the past few weeks as the snow along the high mountain passes started melting.
Three infiltration bids were foiled in Tangdhar sector along the LoC in Kupwara district on May 25, May 31 and June 6 this year.