The bandh call given by the Telangana Sadhana Joint Action Committee in support of a separate state passed off peacefully barring sporadic incidents across the Telangana region.
Schools, colleges, shops and other commercial establishments remained closed in Hyderabad and other places.
The Centre, meanwhile, has called a meeting of eight political parties in the state in Delhi on January 5.
Welcoming the move, JAC said it would chalk out its future programmes depending on the outcome of the meeting. The Osmania University Students JAC, however, said it would not give up the protest till the Centre announced a definite time-bound plan for Telangana.
The Andhra Pradesh State Road Transport Corporation on Wednesday suspended over 9,000 buses in the Telangana region and many long distance services.
Many autos too stayed off the road in the city. Police were deployed across the region. Prohibitory orders under Section 144 have been clamped in Hyderabad and other places.
The JAC leaders, who held a rally at Baghlingampally in the city, were taken into custody by the police.
They demanded that the Centre expedite the process for formation of a separate Telangana state immediately.
Students at Osmania University, which is the epicentre of the separate state movement, continued with their relay hunger strikes on the campus.
BJP leaders led by state party president Bandaru Dattatreya staged a protest near the office of the Director General of Police (DGP) demanding that cases against students and other Telangana agitators be withdrawn.
In Karimnagar district, the agitators set afire a lorry at Godavarikhani last night. The bandh supporters attacked the Provident Fund Office and the groundwater department office in Karimnagar. TRS and BJP organised rallies in the district.
Earlier in the day, DGP RR Girish Kumar said the police would take stringent action against those disrupting normal life, he said.