According to police reports, the bomb, which sent concrete flying onto pedestrians, cars and nearby shops, was placed on a flyover not far from the city court in Srinagar, the main city in Indian-administered Kashmir.
The Kashmir News Service said that a spokesman from the rebel group, Hezb-ul-Mujahedeen, had claimed responsibility for the attack, saying that, "Unfortunately some civilians were injured in the incident."
India and Pakistan have fought two wars over the mountainous region since partition by the British in 1947. Both sides control part of the territory, which has two capitals and hundreds of thousands of troops stationed on either side of the tense Indian-Pakistan border.
Kashmir has been plagued by insurgency since 1989, which has left over 60,000 people dead in the conflict-torn region. India has accused Pakistan on several occasions of sponsoring terrorist groups, an allegation Pakistan has always denied.
The region has however enjoyed a period of relative calm with comparatively few terrorist attacks since the two countries started peace talks in 2004.
