There were no immediate reports of injuries as the protesters chanting pro-independence slogans marched on Friday toward the city centre, Lalchowk, in Srinagar, the main city in Indian Kashmir.
As government forces dispersed them, scores of youth regrouped and hurled rocks at them, police said.
They oppose the government plan to bring back to the region nearly 200-thousand Hindus, known as Pandits, who migrated to Hindu-dominated areas in Jammu region and other parts of India in 1989.