A blast took place outside the Israeli Embassy in the heart of Lutyens' Delhi on Friday evening, a fire service official said.
There were no immediate reports of any injuries. Some cars were damaged in the blast.
"The mirrors of two to three cars are broken. Three fire tenders were rushed to the spot," the official said.
The fire department received the call at 5.11 pm, as the Beating Retreat ceremony was going on at Rajpath a few kilometres away.
The embassy is on APJ Abdul Kalam Road.