Prohibitory orders were clamped in Habeebnagar police station limits of Hyderabad after a communal clash claimed one life and triggered tension.
Five persons, including a police official, were injured in sporadic incidents of violence in Afzal Sagar and Mallepally areas.
Additional Commissioner of Police Abdul Khayyum Khan said trouble arose in a hotel in Mallepally area when some persons tried to slip away without paying the bill.
On a complaint, police intervened and settled the matter.
But later, when a funeral procession was passing through the area, a group of people started pelting stones at the hotel and at shops and houses belonging to a particular community.
Majlis-e-Ittehadul Muslimeen (MIM) leader Mohammed Ghouse was severely injured when he was attacked with lathis and hit by a boulder.
He succumbed to his injuries at the Owaisi Hospital.
Five persons, including Assistant Commissioner of Police (Goshamahal division) Rajab Ali, were injured in the stone pelting.
Police fired four rounds in the air to disperse the clashing groups.
Senior police officials rushed to the area with reinforcements and brought the situation under control.
Later, six platoons of the police were deployed in the affected areas.
"We are maintaining a tight vigil. The situation is tense but under control," Additional Commissioner Khan said.