Police said the area has been cordoned off by the security forces to trace the attackers.
The grenade attack comes a day after two non locals – a bank manager from Rajasthan and labourer from Bihar, were killed in two separate targeted attacks in Kashmir.
The spree of targeted attacks has triggered panic and anxiety among minorities and non locals have begun to move out of the valley.
Amid the spate of targeted killings, Union Home Minister Amit Shah on Friday reviewed the security situation in the Jammu and Kashmir