Islamabad, Dec 5 - At least two people were killed and several more injured Saturday when a car bomb exploded in a busy market in Peshawar, the capital of Pakistan's North West Frontier Province, police said.

The bombed market also houses an outlet of US restaurant chain KFC, which the police suspected to be a possible target.

An officer at the main control room of the town's police said two bodies and eight injured people have been moved to hospital.

"According to the initial reports it was a car bomb but it's not clear whether it was a remote-controlled blast or a suicide attack," he added.

Following the blast, fire engulfed at least two multi-storey buildings where people were trapped.

Television footage showed people shouting for help from the windows and fire fighters trying to extinguish the blaze.  (IANS)