Monday saw thin traffic on roads across the Valley. Most schools, government offices, banks and petrol pumps were closed for the day.
To foil Malik's rally, authorities imposed curfew-like restrictions in three sensitive areas. Dozens of JKLF leaders were arrested in raids over the last four days and razor sharp concertina wires were laid at all intersections leading to Lal Chowk.
Meanwhile, hardline Hurriyat chairman Syed Ali Geelani said the plan to create special enclaves for returning Kashmiri Pandit migrants was dangerous.
Kashmiri Pandits fled from the Valley after militancy broke out in 1989.
"No Kashmiri Muslim is opposed to the return of the Pandits. But by creating separate cities for them the government is working on a dangerous plan to harm our centuries-old brotherhood, to divide our society and to give our freedom struggle a communal colour," he said.
He said that chief minister Omar Abdullah had been called to New Delhi recently and asked to "identify 16,800 kanals (approx 2,082 acres) of land in Kashmir to establish three separate cities for Kashmiri Pandits."
"It's a grave issue… We will try to create a national consensus against these policies of the Indian government and will start consultation with (separatist) groups and religious organizations," he said.