A car bomb on Thursday rocked the Hyderpora suburb of occupied Srinagar injuring a occupation policeman, police said.
Hizbul Mujahideen immediately claimed responsibility for the car bomb in calls to the local media.
The explosion damaged a police vehicle and caused traffic snarl-ups on a main highway that connects occupied Srinagar to the southern city of occupied Jammu.
The explosion occurred as a moderate faction of the All Parties Hurriyat Conference headed by Maulana Abbas Ansari met to discuss its strategies for the January 22 talks in New Delhi with Indian Deputy Prime Minister Lal Krishna Advani.
Hardline freedom fighters are opposed to the talks.
The blast occurred on the highway out of occupied Srinagar connecting the city with occupied Jammu and northern town of Baramulla, bringing traffic to a standstill.
Wreckage of the car used in the bombing was strewn around the area, with only the front of the vehicle left intact.
In another incident, a policeman was killed when rebels ambushed a patrol in the southern town of Tral on Thursday, police said.
Meanwhile, Indian occupation Border Security Force backed by police shot dead a alleged freedom fighter during an early morning encounter on Thursday in occupied Srinagar, BSF spokesman Tirtha Acharya told AFP.