Police sources said two armed assailants walked into a liquor store in the inner marker of Sector 9 and began firing at those working at the shop as bystanders ran for cover, some running into nearby shops for protection.
The attackers then went to a car parked a few metres away where their accomplices were waiting, and drove away, police sources said.
A policeman with Chandigarh’s traffic police wing was at the market when the incident occurred and made a call to the police control room.
Two people wounded in the incident have been taken to Post Graduate Institute of Medical Education and Research.
Police are now going through footage from security cameras at the market to identify the attackers, sources said.