SRINAGAR, India, Nov 15 (Reuters) - Indian troops killed seven suspected militants in two gunbattles in Kashmir on Wednesday, as top diplomats from India and Pakistan held a second day of talks including over the dispute in Kashmir.The two firefights took place in Kupwara district in Indian Kashmir, bordering the Pakistani sector of the Himalayan region. One soldier was killed and three wounded in one of the gunbattles, Lieutenant-Colonel A. K. Mathur, an army spokesman said. Guerrilla violence has increased in Kashmir this week, just as the diplomats from India and Pakistan sat down for first talks in nearly a year in New Delhi. The talks were due to end later on Wednesday. On Tuesday, 28 people including 17 civilians were wounded in a car bomb and a landmine blast in Kashmir. The Hizbul Mujahideen, the largest rebel group fighting for region's merger with Pakistan, claimed responsibility for the attacks. India says Pakistan needs to do more to curb militants from crossing into Indian Kashmir from the Pakistani sector. Islamabad says it is doing all it can against them.