More than a dozen people were injured after terrorists threw a grenade at Hari Singh High Street in Srinagar.
There was a huge rush in the busy marketplace on Sunday when terrorists struck.
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The condition of some of the injured is said to be serious.
Security forces have cordoned off the area.
“I condemn this deplorable attack in the strongest possible terms. May the deceased find place in Jannat & may the injured make a complete and speedy recovery,” former Jammu and Kashmir Chief Minister Omar Abdullah tweeted, quoting a report that said one person had died.