There was festive spirit during the day in the two states and Chandigarh, with people thronging the markets for last-minute shopping.
Fireworks illuminated the evening sky, 'diyas' (earthen lamps) and candles dotted houses and people exchanged sweets and gifts on the occasion, which also witnessed bonhomie between Indian and Pakistani guards at border posts.
Children and youths burst crackers at various places including Chandigarh, Ambala, Rohtak, Hissar, Gurgaon, Faridabad, Bhiwani, Amritsar, Jalandhar, Ludhianan, Patiala and Pathankot.
People had decorated there home tastefully and in the evening they worshipped Goddess Laxmi.