One person was killed and more than 20 others injured on Sunday when an assailant lobbed a grenade at a busy market in the main city in Indian-controlled Kashmir, police said.
According to local media reports, the target of the attack in Srinagar appeared to have been security personnel in the area. There was a huge crowd in the market when the grenade exploded.
The injured were taken a hospital.
Police officer Sujit Kumar said that security forces were investigating and that the attacker would be found soon.
Kashmir is divided between India and Pakistan, which both claim the region in its entirety.
India accuses Pakistan of supporting armed rebels who want to unite the region, either under Pakistani rule or as an independent country. Islamabad denies the accusation and says it only provides diplomatic and moral support for the Kashmiri people.
In Indian-controlled Kashmir, tens of thousands of civilians, rebels and government forces have been killed in the past two decades.