In the Kashmir Valley, the police today eliminated two terrorists of Lashkar-e-Toiba in Phulwama district of South Kashmir. A fierce encounter took place between holed up terrorists and security forces since Friday night.Official sources said acting on a tip-off about the presence of ultras, security forces launched the search operation.When they were sealing the particular area, the terrorists opened fire with automatic weapons. Security forces also returned the fire. The sources said reinforcement rushed from near by camps to further tighten the cordon. However, the operation was stopped due to darkness.With the first light, encounter again started in which the ultras were killed.