One person was killed and six others injured in a powerful blast at Narwal in Jammu on Saturday morning.
The injured victims have been taken to a hospital for treatment, said the police.
Senior police officers have rushed to the spot.
Militants hurled a grenade that exploded outisde a wine shop in Narwal, injuring seven people.
"One critically injured person succumbed to his injuries," said a police official.
Militants had on Thursday evening fired indiscriminately at a wine shop in Srinagar, killing one person and injuring three salesmen.
The blast has triggered tension in the area.