Four unidentified youths had shot dead Vipan Sharma from point blank range in full public view in the Bharat Nagar locality on Batala-Amritsar road yesterday.
The bandh had an effect at some places including the Hall Bazar area inside the walled city and Batala road, where the deceased lived while it did not have much effect in the rest of the city, police said.
They demanded Rs 25 lakh as compensation and a government job to one of the family members of the deceased.
In the evening, a rail track was blocked and some protesters pelted stones on the moving Tata Muri train, police said.
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However, the protest dharna was lifted on the assurance of district administration that their demands will be forwarded to state government, police said.
Sharma will be cremated tomorrow.
Meanwhile, police claimed to have identified one of the assailants who killed Sharma yesterday.