Superintendent of Police (SP) Harwinder Singh Sandhu said the woman has been identified as Surinder Kaur (65).
An almirah at the house was found ransacked and its locks were broken, indicating robbery as motive behind the killing, Sandhu said.
The brutality of the crime also indicated that the victim might have recognized the killers or resisted them, he said, adding that the body bore marks of injuries caused by sharp- edged weapons.
The victim's husband had passed away a few years ago while her son and daughter-in-law are settled in Australia, Sandhu said.
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She also said that gold bangles from her wrists were also missing.
The police officer said fingerprint experts were being called in. CCTV footage from adjoining market will also be scanned.
A case has been registered, said the SP.
The house of the victim is located opposite a crowded market selling eateries and snacks and is also close to a police checkpost.