The Improvised Explosive Device (IED), which was allegedly planted by militants near a drain at the crowded Thangal market complex, went off at 7.45 pm but no one was injured, police sources said.
No individual or group has claimed responsibility for the incident, they said.
Police and para-military forces rushed to the spot and searched the area after blocking all exit points but no arrest was made, sources said.
On October 29, a powerful bomb (IED) had exploded at Dharamsala Bheirodan Hindi High School area, about 100 metres from today's spot, injuring five non-Manipuri labourers.
In the wake of stepped up bomb explosions, Manipur Governor Ashwani Kumar had discussed the law and order situation in the state with Chief Minister Okram Ibobi Singh on Wednesday evening.