The incident took place on Thursday in Bamorikalan town, where Ramu Gurjar, a resident of Kota, was buying vegetables at the market when Asharam Gurjar, also from the district, arrived carrying an axe.
Asharam repeatedly struck Ramu on the neck with the axe, leaving him seriously injured and collapsing at the spot, and the attack triggered panic in the market.
A police constable reached the spot shortly afterwards and, with the help of villagers, caught the accused, who was then locked inside a shop with its shutters pulled down.
A police team later arrived, opened the shop and took Asharam into custody, bringing the immediate incident to a close.
Ramu was taken to a hospital, where he was declared dead on arrival, turning what began as an ordinary market visit into a murder case.
According to the police, a history of mutual rivalry is suspected to have led to the murder, and the case is now in the hands of the investigating officers.
The killing has shaken the local market area, where shoppers and shopkeepers witnessed the attack and the swift action that followed it.