Seraikela Sub-divisional Police Officer Naresh Kumar said the clash occurred over an issue, which was not yet ascertained, and around 12 students were injured.
A police team went to the spot after being informed about the incident, he said, adding the injured were taken to Tata Main Hospital here and all were released later.
Several two wheelers and property of the institute were damaged in the incident.
Meanwhile, NIT spokesman Dr Rajiv Bhusan said the situation was under control and an enquiry committee has been constituted to probe the incident.
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Both groups of students have given a written assurance to the NIT Director that they would not indulge in any sort of undesirable activities in the campus again and take part in the academic activities as usual, Bhusan said.
All the activities of the institution including the ongoing campus placement process have taken place in the campus uninterrupted during the day, he added.
Police said no complaint was lodged in this regard as yet.