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The Army identified the fallen soldier as Naib Subedar Rakesh Kumar of 2 Para and honoured his sacrifice.
The grenade missed its intended target and landed on the roadside, injuring 11 people.
Search operations are underway after the Indian Army cordoned off the area.
Chief Minister Omar Abdullah condemned the attack.
The cause and perpetrators of the blast and subsequent gunfire remained unclear.
The multiple districts raided include Srinagar, Ganderbal, Bandipora, Kulgam, Budgam, Anantnag, and Pulwama.
Union Home Minister Amit Shah said those involved in the dastardly terror attack will not be spared.
Chinese embassy described it as a 'terrorist attack.'
Modi said he spoke to the Israeli PM on the recent developments in West Asia.
The Norwegian citizen hailing from Wayanad has not contacted his family since his company was wrongly linked to attacks in Lebanon.
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