The victim identified as Intekhab was shot yesterday while he was standing at the crossroads of the market.
Intekhab, a resident of Chamanganj there had an heated exchange with the three men who approached him on vehicle, who later put a country-made firearm to his head and shot him, a police spokesperson said, adding the miscreants then fled the spot.
Police after arriving on the crime scene rushed the trader to a hospital but the doctors where he was declared dead.
After the incident, irate mob marched towards the home of an accused and allegedly set two motorcycles and one car parked outside his home on fire.
Senior police officials then pacified the crowd with difficulty and dispersed them to prevent worsening the situation.
In view of the sensitive situation, police forces have been deployed in the area. No arrests have been made as yet as and police is on the look out for the absconding men.