Some shops and schools also opened in response, less than a week after the Indian authorities launched a major crackdown, apparently aimed at separatist ambitions in the majority Muslim state.
But with public mobile, landline telephone and internet connections still severed by the authorities in most of the Indian-controlled Jammu and Kashmir state, many people were still struggling to make contact with relatives to plan the holiday.
And some homeowners and city workers were left to clean up Srinagar's streets on Saturday, a day after police used tear gas and fired pellets to control a protest after Friday prayers over India's withdrawal of special rights for the Muslim-majority state.
Modi's Hindu nationalist Bharatiya Janata Party and even some top opposition leaders have welcomed the decision to absorb Kashmir fully into India, and it has brought him support across the country.
Arch-rival Pakistan, which lays claims to Kashmir, has downgraded diplomatic ties with India and suspended trade in anger at its latest move.
Pakistan said on Saturday it had cancelled a bus linking Lahore with Delhi, the last remaining public transport link between the neighbours.
Russia on Saturday said the administrative changes in the region were carried out within India's constitutional framework, according to Reuters partner ANI.
But Pakistan said on Saturday that it has gained China's support to take a motion to the United Nations Security Council condemning the Indian decision to change the status of Jammu and Kashmir.