Indian police say one person was killed and at least 26 others wounded by an explosion in Indian-controlled Kashmir Wednesday.

It is unclear what caused the blast that sparked panic in a busy market area of Rajouri town, about 100 miles north of Jammu, in southern Kashmir.

So far, none of the rebel groups operating in Kashmir have claimed responsiblity. Militant separatists have been fighting Indian rule in Kashmir since 1989.

Thousands have died in violence over the disputed region, and India and Pakistan have fought two wars over it. But violence has eased since the nuclear rivals began moving toward peace more than a year ago.

Some information for this report provided by AFP and AP.