AURANGABAD: Panic gripped the city after a pipe-bomb exploded in the Nirala Bazaar area around 10 pm on Sunday.
However, no casualties were reported. Only window panes of shops and some signboards were damaged.
A bomb squad rushed to the site and successfully defused a second bomb, which was about to explode.
Aurangabad police commissioner Vishnudeo Mishra said preliminary investigations indicated that the explosion in the most crowded market area was an act of terrorism.
A red alert has been sounded in the city and police forces are maintaining a strict vigil at all public places, Mishra added.
As soon as the bomb exploded near the Ghungroo shoppe, panicstricken people started running helter-skelter.
The traffic was closed immediately and a bomb detection and disposal squad was called.
The pipe-bomb was connected to 10 batteries, the police said.
Police inspector James Ambildhage said the motive behind the act might have been to cause panic among people.