"Curfew has been imposed in some parts of Budgam district due to the violence including arson yesterday," the officials said.
The officials, however, refused to give details about the number of houses torched by the rival sects yesterday. Sources said at least a dozen houses were set on fire, resulting in extensive damage to the structures.
Extra security forces were rushed to the affected areas last night to maintain peace as senior officials of police and state administration requested people to maintain calm.
Violence broke out in Sabdan, Galwanpora and Reshipora villages of Budgam on Friday night following dispute between two sects over construction of a village road.
However, separatist groups have blamed intelligence agencies of fuelling the violence to divert attention from alleged human rights violations like the Gool firing incident.