Shops, business establishments and educational institutions remained closed while train service was also suspended from Banihal to Baramulla in wake of strike, jointly called by the Hurriyat and JKLF factions.
Reports said most of public and private transport remained off the roads, while offices and banks too recorded thin attendance.
Following the clash on Tuesday, at Chadoora in Budgam area of Central Kashmir, the joint Hurriyat leadership in the valley asked people to observe shutdown on Wednesday and hold protests after Friday prayers against the death of three civilians.
Meanwhile, University of Kashmir (KU), Islamic University of Science and Technology (IUST) and Central University of Kashmir (CUK) have postponed all the examinations scheduled for Wednesday, in view of the general strike.
In February, Indian Army Chief General said people protesting near gunfight sites should be dealt with sternly.
A video from the Chadoora encounter site shows Army men firing indiscriminately while chasing the protesters, who were pelting stones on them.
(Reporting by Saleem Iqbal Qadri)
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