The injured persons were rushed to a hospital where they are undergoing treatment, the official added.
A terrorist was killed in an overnight encounter with security forces in Pulwama district of Jammu and Kashmir, police said on Friday.
Security forces launched a cordon and search operation in Lalpora area of Pampore in south Kashmir district on Thursday, following information about the presence of terrorists in the area, a police official said.
He said as the search operation was going on, terrorists fired indiscriminately, resulting in injuries to two persons.
The injured persons were rushed to a hospital where they are undergoing treatment, the official added.
The security forces maintained a tight cordon of the area throughout the night and in the exchange of firing on Friday morning, one terrorist was killed, he said.
The identity and group affiliation of the terrorist was being ascertained, the official said, adding that the operation is underway.