Unidentified militants hurled a grenade towards security personnel outside the defunct Palladium Cinema but the device fell short of the target and exploded on the roadside, they said.

Seven persons were injured in the blast which sparked off panic in the business hub.

The injured were rushed to SMHS hospital, the police said adding, the area has been cordoned off and a hunt has been launched to nab the militants involved in the attack. No militant outfit has so far claimed responsibility for the explosion.

On Friday, the fierce encounter in Arnia sector of Jammu region close to Indo-Pak border ended on Friday morning after the remaining fourth militant was gunned down by security forces during the terror attack on an Army patrol that in all left 12 people dead including five civilians and three army personnel.

"The encounter has ended and boys did a good job by preventing the militants from striking anywhere," Director General of Jammu and Kashmir Police K Rajendra told on Friday.

"In all, we have lost three Army personnel and five civilians. All the four militants have been killed," he said, after the end of the encounter which lasted over 24 hours following the fidayeen attack.

Army on Friday said that the four heavily- armed terrorists who were gunned down in a gunfight with security forces in Jammu district had possibly infiltrated into India from across the International Border (IB).

Indian Army has eliminated four heavily-armed terrorists close to Kathar village in Arnia sector in Jammu region. The terrorists had possibly infiltrated from across IB on the night of November 26/27," said Defence PRO, Lt Col Manish Mehta.

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