Indian army troopers on Tuesday killed a young man and wounded another after opening gunfire at protesters in Indian-controlled Kashmir, officials said.

The incident took place in Baramulla town, around 55 km northwest of Srinagar city, the summer capital of Indian- controlled Kashmir.

The slain youth was identified as 23-year-old Tahir Ahmad Sofi.

Eyewitnesses said a patrolling party of Indian army troopers fired at protesters after being jeered by a few youth on the road.

"The angry army men barged into our houses and resorted to ransacking of houses and smashing of wind shields of parked vehicles," said Mohammed Younis, a local resident over telephone from Baramulla. "The army action triggered protests by the residents, following which troopers opened gunfire killing one and wounding another."

The wounded youth was immediately taken to district hospital and was stated to be stable by doctors.

Soon after the news about killing spread, hundreds of locals shouting anti India slogans took to streets against the Indian army and local government.

"We have initiated an inquiry into the incident," said Khawaja Ghulam Ahmad, deputy commissioner Baramulla. "There was no law and order problem in the town and I don't know why army men went there. "

The region's Chief Minister Omar Abdullah expressed his anger and dismay over the killing of the youth and described it an as " unpardonable act."

"This is why I am vehemently raising the issue of partial revocation of (the) Armed Forces Special Powers Act (AFSPA) so that the erring forces personnel do not go scot-free," Abdullah told the lawmakers in Jammu, the winter capital.

A statement issued by Srinagar-based Indian army spokesman said their troopers were attacked by a mob in the town, forcing them to open gunfire to disperse them.

New Delhi has imposed the controversial AFSPA in the region, which gives extraordinary powers to its troops such as shooting a person on mere suspicion. Indian troops were consistently accused of grave human rights violations in the region in the last two decades.

Authorities, fearing spreading of clashes, have snapped mobile Internet services in the Muslim majority areas of the region in wake of the fresh killing.

Life across Muslim majority areas of Indian-controlled Kashmir Tuesday remained affected for the second straight day due to protests and shutdown over the death of a Kashmiri student in Indian state of Andhra Pradesh.