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The incident took place Wednesday evening when the Kashmiri youths were selling dry fruits on Daliganj bridge.
They were attacked with sticks by saffron-clad men, the video of which has gone viral.
The locals, however, rushed to their rescue and informed the police.
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The main accused, identified as Bajranj Sonkar, has been arrested, he said.
Sonkar claims to be the president of the Vishwa Hindu Dal.
Incidents of harassment of Kashmiris, especially students, have been reported from various parts of the country after the Pulwama terror attack on February 14.