The TRS supporters are protesting against the arrest of their leader K Chandrasekhar Rao, who continued his fast in prison.
Andhra Pradesh State Road Transport cancelled its bus services in Hyderabad and other Telangana districts like Medak, Karimnagar, Nizamabad and Warangal, leaving many commuters stranded.
Many educational institutions and business establishments remained closed in the city due to the bandh.
Senior TRS legislator T Harish Rao said, "We are expressing our protest by sitting in front of bus stations. People of Telangana are moved by the arrest of Chandrasekhara Rao. We are getting voluntary support from employees, teachers, students, businessmen and all sections of the society."
Meanwhile, Chandrasekara Rao continued his fast in prison at Khammam for a separate Telangana.
Harish Rao appealed to party men and supporters to observe restraint and not to resort to violence.