"At least three to four militants attacked the market place in the afternoon. One militant has also been neutralised. We have launched an intensive operation to track down others involved in the terror attack," state police chief Mukesh Sahay told the media.
While 14 people lost their lives, those injured have been admitted to nearby hospitals where the condition of some are said to be serious, the official said.
Local TV channels reported the area has been cordoned off by the security forces and operations have been launched to track down the militants who are suspected to be hiding in nearby buildings in the area. Some reports said a building adjacent to the market place caught fire in the attack.
Indian Prime Minister Narendra Modi said he was saddened by the attack. "We strongly condemn it. Thoughts and prayers with the bereaved families and those injured."
Assam`s Chief Minister Sarbananda Sonowal has also condemned the attack and promised action. "Whoever is responsible for this will not be spared. Our policy is zero tolerance for terrorism," he told the media in the national capital.
The state government has announced a compensation of five lakh rupees (9,000 U.S. dollars) to the family of each of those killed.
Though no group has claimed responsibility for the attack, police suspect the militants were rebels of the outlawed National Democratic Front of Bodoland in Kokrajhar, which has been fighting for a separate homeland for the region`s ethnic Bodo people.
The chief minister hoped the people of Assam will maintain peace during this critical period. "I am sure people of Assam will definitely maintain peace and harmony. This is our sincere appeal to everyone," he said.
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