The encounter carried on for around 16 hours.
The security forces holed-up the terrorists in a school building and engaged in a gun battle.
A police official, who was part of the operation, said at around midnight, militants fired from AK-47 rifles towards the security personnel from the administrative block of the school.
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After the firing, a large contingent of police, CRPF and army personnel had arrived in the area - a highly fortified zone - a few hundred metres away from the Indian Army's 15 Corps headquarters.
The militants then took refuge inside the school premises.
Director General, CRPF, Rajeev Rai Bhatnagar, and senior officials of Ministry of Home Affairs, CRPF and Border Security Force (BSF) placed wreaths as a mark of respect to the supreme sacrifice.
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He added that the operation at the DPS (Srinagar) was carried out meticulously.
"Search operation is going on as there is possibility of militants being holed up in one of the buildings there", said Yadav.
"Restrictions under Sec 144 imposed from Ram Munshi Bagh to Sempora (around Pantha Chowk attack site) with immediate effect", Srinagar's Deputy Commissioner Farooq Ahmad Lone told ANI. After the attack, army, SOG and CRPF cordoned off the area and launched a manhunt to nab the assailants. The number of militants could not be ascertained immediately. However, there is no official confirmation if the militants managed to enter the complex.
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The security forces took all possible precautions to prevent collateral damage. The highway helps militants to strike and disappear easily and also grab attention by disrupting vehicular movement.