SRINAGAR, Indian-controlled Kashmir, Feb. 13 (Xinhua) -- The gunfight in Srinagar city, the summer capital of Indian-controlled Kashmir Tuesday entered the second day, police said.

"The firing has resumed again in the morning and exchange is ongoing," a senior police official told Xinhua. "The entire area has been cordoned off."

The gunfight broke out at Karan Nagar locality of the city on Monday after two militants took refuge inside an under-construction building behind a paramilitary camp to engage them.

Initially paramilitary spokesman said their alert troopers foiled a fidayeen (suicide attack) bid from militants. However, during searches in the area they came under heavy fire.

A paramilitary trooper was killed, while a policeman was wounded fighting the militants in locality on Monday.

Reports said restrictions have been imposed in various parts of the old city to prevent youth from staging protests near the site of the gunfight.

The attack came hours after culmination of gunfight inside a military camp in Jammu.

At least 10 people -- six army troopers, a civilian and three militants -- were killed in a two-day long stand-off inside a military camp, which was stormed Saturday morning.

A guerrilla war is going on between militants and Indian troops stationed in the region since 1989.