He was 79 and is survived by four sons and seven daughters.
Nawaz had earned an enviable position in modern Urdu poetry and was regarded as a poet with international fame.
Apart from 'Bazaar', he also wrote songs for the films 'Lori', 'Janewafa' and 'Tere Shahar Mein'.
Mohammad Rafi, Talat Aziz, melody queen Lata Mangeshkar, Asha Bhosle, Gulam Ali and Bhupendra, among others, had lent voice to his lyrics.
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Initially he was influenced by the Leftist movement which reflected in his poems. He also wrote radio dramas and scripted the television serial 'Amir Khusrau'.
He had also been a municipal councillor in Aurangabad in the 1950s.
The poet was buried at the Panchkuwan cemetery in Aurangabad after Namaz-e-Janaja was offered at Jama Masjid this evening.