Police said a group of militants swooped down on Tiniali market this afternoon and opened fire in the marketplace killing two and injuring several others before fleeing.
The police have so far recovered two bodies and it is feared that the toll may increase.
The injured, many of them critical, are being shifted to nearby hospitals.
The area has been cordoned off by police and army security personnel and operations have been launched as the militants are suspected to be hiding in nearby buildings.
Assam Director General of Police Mukesh Sahay said, “There has been an incident of firing. The security forces have reacted to it and one suspected militant as been reportedly neutralised. We have launched an intensive operation.
“There could be three-four more militants there,” he said.
PTI