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The services have been barred in Srinagar, Anantnag and Pulwama districts of the valley, a police official said.
He said the decision to suspend the services has been taken as a precautionary measure to maintain law and order.
An encounter is going on in Anantnag district in south Kashmir in which two militants, reportedly affiliated to Islamic State Jammu and Kashmir, have been killed. One of the militants is believed to be from Srinagar.