Normal life in restive Indian-controlled Kashmir was severely hit Monday due to shutdown called by separatists to protest the killing of two youth in army firing, officials said.

The youth were killed on Sunday in village Markundal-Sumbal of Bandipora district, around 38 km north of Srinagar city, the summer capital of Indian-controlled Kashmir.

Markets, business establishments, educational institutions, banks and private offices remained closed in Muslim majority areas of the region including Srinagar city. The public transport was off the roads in wake of shutdown call.

The attendance in government offices also remained affected due to shutdown call. The killings triggered severe anti-India and anti- army slogans in Bandipora district and evoked sharp criticism.

"It is the worst example of state terrorism," said Syed Ali Geelani, the hardline Hurriyat (freedom) Conference. "Soon after the Indian prime minister's visit and in order to convey message to people of Jammu and Kashmir, the forces killed two youth and conveyed that India with its military power would continue its forced occupation."

Contingents of police and India's paramilitary Central Reserve Police Force (CRPF) have been deployed in the Bandipora to prevent spreading of protests, an official said.

The army has regretted the killings and said it has ordered an inquiry into the deaths. The local government has also registered a case against unidentified army personnel.

New Delhi has imposed the controversial Armed Forces Special Powers Act (AFSPA) in the region, which gives extraordinary powers to its troops such as shooting a person on mere suspicion. During the last more than two decades Indian troops were consistently accused of carrying out grave human rights violations in the region.

Separatists demanding end of Indian rule have been asking the withdrawal of troops and scrapping of their special powers. They have even made it a pre-condition for entering into formal talks with New Delhi. A guerrilla war is also going on between militants and Indian troops stationed in the region since 1989.