Frontline militant group Hizbul Mujahideen has claimed responsibility for the explosion.
The police claimed the bus driver had violated rules for the pilgrimage.
Curfew-like-restrictions were imposed in the old city of Srinagar and some uptown areas to foil protests and a sit-in at the historic Jamia mosque after the Friday prayers.
Curfew and restrictions continued in Kashmir for the 29th day after fresh clashes erupted in the Valley killing three men on Friday.
Zora's family has convinced her that her father has gone for Hajj and will return soon.
Kashmir was indeed in need of a messiah that summer; 70 per cent of its population aged below 31 were up in arms against the Indian State. Every nook and corner of the land brought forth stories of youngsters with crushed bodies and an unfaltering spirit.
On a day Union Home Minister Rajnath Singh was in the Kashmir Valley where life remained paralysed for the 47th consecutive day, a youth died in a clash with security forces while 18 security personnel, including three officers, were injured in a terrorist attack.
Hundreds others were wounded many of whom received bullet and pellet injuries and are undergoing treatment in various hospitals.
Most of these new recruits came from Pulwama, Shopian and Kulgam districts in South Kashmir, which had become the hub of tech-savvy, young militants.
Restrictions on the assembly of people would remain in force across the Valley to maintain law and order.
In Jammu region, three districts of Jammu, Samba and Kathua are in red zone.
http://www.rediff.com/news/interview/why-kashmiri-students-are-throwing-stones/20170505.htm
Police, assisted by security forces, immediately sealed the area and a hunt has been launched to nab the militants involved in the killing, the sources said.
Zahid Rasool Bhat, 19, a truck assistant had received 74 per cent burn injuries with another person on October 9 when a Kashmir-bound truck was attacked by a mob protesting against the beef party hosted by an independent MLA in the summer capital of Srinagar.
Barring parts of Srinagar city, Anantnag and Pampore towns, curfew was on Saturday lifted from Kashmir even as normal life remained disrupted due to the strike called by separatists.
Former Director General of Sikkim Police Avinash Mohananey interrogated Azhar many a times during his two-decade tenure in the Intelligence Bureau.
The officer claimed 88 Kashmiri youths joined militancy in 2016.
The five were killed in two separate encounters in Anantnag and Rajouri districts.
A mob attacked a police post at Hatmulla in north Kashmir's Kupwara district this afternoon following which the security personnel retaliated.
An army major was killed in an accident during a cordon and search operation in south Kashmir's Anantnag district on Monday.
Union Home Minister Rajnath Singh is scheduled to arrive in Srinagar on a two-day visit later in the day, official sources said.
Curfew was on Monday lifted from the entire Valley except three police station areas 51 days after it was clamped to maintain law and order.
Restrictions have been imposed in five police station areas of Srinagar, a police official said.
Three days before the area goes to polls, suspected militants gunned down three persons including a sarpanch, his son and a village headman in two adjoining villages of south Kashmir Tral in Pulwama district.
Political parties held protests against the ban on April 7 as well as Wednesday.
Jammu and Kashmir Agriculture Minister Abdul Aziz Zargar said such allegations are being made despite the police denying any links between him and the militants.
As the security forces were engaged in the counter-militancy operation, over 100 protesters pelted stones on them, an army official said.
The IED was planted under a bridge at Ganeshpora, 75km from Srinagar, on the Srinagar-Pahalgam Road in Anantnag district.
A police official said the curbs have been imposed to maintain law and order in view of the separatists call for a march to the three districts of Baramulla, Pulwama and Srinagar.
Curfew was on Sunday lifted from all parts of Kashmir but normal life in the Valley remained affected due to the strike call given by hardline Hurriyat Conference to protest against the firing incident in Ramban district that left four persons dead.