The curfew could be lifted or relaxed in other parts of the valley as well depending on the law and order situation.
The authorities imposed a curfew on the disputed Himalayan region on Tuesday, Jul 6 and ordered the army to take control of Srinagar on Jul 7 to quell huge protests against Indian rule.
Every year, tens of thousands of Kashmiri Muslims throng to Hazratbal shrine, the holiest in the region, to celebrate Shab-e-Meraj, the ascension of the Prophet Mohammad to heaven. The celebrations started in Kashmir on Friday, Jul 9.
Home Secretary Gopal Pillai said on Friday, "tomorrow (Jul 10) there is a major festival at Hazratbal shrine and therefore there will be relaxation of curfew from tonight (Jul 9) till late evening tomorrow."
He also stated, "we are hopeful that peace will be maintained."
In many parts of Kashmir's summer capital, Srinagar, people poured into grocery shops when the curfew was lifted, having run out of food since the restrictions were imposed.
Sameer Kaul, a Kashmiri oncologist said, "it is a very good gesture since this festival is very sentimental for Kashmiris, who can now at least stock up with provisions for the next few days."