The attack targeted Wahailat outdoor market in Sadr City, a predominantly Shia neighbourhood, said a CNN report.

Mostly women and children were killed in the suicide attack and a number of shops and stores were destroyed, police said, it added.

Iraqi military said the blast was caused by an improvised explosive device (IED). However, an investigation is still underway to ascertain the cause of the blast, police said.

The Iraqi President and Iraqi Prime Minister, condemned the "terrorist attack" and promised to bring perpetrators to justice.

"We will not be calm unless we uproot the hateful and cowardly terrorism, and it is certain that the will of the Iraqis is beyond their criminality and villainy," President Barham Salih said in a statement released by his office on Monday, the CNN report stated.