India's army says two rebels and two Indian soldiers were killed in an overnight gunbattle close to the cease-fire line dividing Kashmir between India and Pakistan.

Col. Nitin N. Joshi, an army spokesman, says the firing erupted on Friday night in Nowgam sector after Indian soldiers spotted the insurgents, who they believed infiltrated from the Pakistani side of Kashmir.

India accuses Pakistan of arming and training insurgents fighting for Kashmir's independence from India or its merger with Pakistan, a charge Islamabad denies.

Meanwhile, curfews continued to be enforced in parts of Indian-held Kashmir on Saturday, with shops closed across the region in response to a separatist call for a shutdown until Sunday amid outrage over the killing of a top rebel leader earlier this month.