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A senior police official in Srinagar said militants hurled a grenade at a party of paramilitary Central Reserve Police Force, near the bus stand in Sopore town, which exploded injuring 10 civilian bystanders.
The injured were taken to hospital, where a 60-year-old civilian identified as Ghulam Mohammad Sheikh succumbed to his injuries.
The area was cordoned-off by security forces for search operations.
No group has yet claimed responsibility of the attack.