TEN people, including two children, are in hospital after shots were fired in the Moss Side area of Manchester early this morning.
Greater Manchester Police were called to Claremont Road at about 2.30am and discovered several people had been hurt in the incident.
The force said most of the injuries did not appear to be life-threatening.
A number of people were in the area following the Caribbean Carnival, which had finished some hours before.
Detective Superintendent Debbie Dooley said: "We currently have a number of people in hospital all being treated for different injuries but thankfully most do not appear to be life-threatening at this time.
"Officers are trying to establish exactly where this incident took place and who is responsible for such a dangerous attack.
"Those living or visiting the area will understandably be concerned by this incident and we will have extra officers patrolling the area throughout the morning and into the coming days."
Claremont Road was cordoned off by police on Sunday morning.
Litter including empty bottles of brandy and other drink containers, food wrappers and nitrous oxide canisters could be seen across the street.
Residents said a street party was held annually on the road after the Caribbean Carnival in nearby Alexandra Park.
Youth worker Kemoy Walker said he was shocked at the news.
He said he had been on the main stage at the carnival on Saturday and had been at another street party on Claremont Road until about 11.30pm.
He said: "The party I was at was beautiful. When I left there was lovely dancing. That's Moss Side, that's the culture. I'm in shock this morning."
He said he believed the carnival would go ahead as planned on Sunday.
"We need to get the message across to young people to make sure they are not getting involved in negativity," he said.
He added: "Moss Side has come such a long way and there are great things happening in our community now. Hearing this, I just think why is this happening."
Greater Manchester Police (GMP) said nine people, including two children, were taken to hospital with pellet-type wounds that are not believed to be serious.
A tenth person - a man - is in a stable but serious condition with injuries to his legs.
Chief Superintendent Wasim Chaudhry, from GMP's City of Manchester division, said: "Thankfully the injuries suffered do not appear to be as serious as first believed and hopefully people will begin to leave hospital over the course of the day following treatment.
"That being said, there may be people who didn't seek treatment last night and I would urge these people to get immediate medical attention if that is the case.
"This was a reckless act that could have had devastating consequences with families and friends losing loved ones."
He added: "Today the community is likely to feel concerned and that's completely understandable.
"Guns have no place on our streets and we want to assure you we are doing everything we can to find the person or people responsible."
Cllr Pat Karney said a man had suffered a broken leg when he was believed to be attempting to flee the incident while the others who were injured had sustained pellet wounds.
He joined Moss Side councillors Sameem Ali and Mahadi Sharif-Mahamed in speaking to the media after a briefing with police and urged the community to enjoy the second day of the carnival.
Cllr Karney said: "It's an individual, an idiot, who was messing around with a firearm and you can't tar a whole community because of some idiotic behaviour.
"That could happen in any city in this country.
"I think the fact that over 16,000 people came out to the carnival yesterday indicates the strength of the community here and their desire to celebrate their area."
Cllr Ali said: "It was an isolated incident and I do want to reassure the community and ask them to come out and enjoy the second day of the carnival because it's a fantastic event and it's really positive. We really want people to enjoy the day as usual."
Cllr Sharif-Mahamed added: "We had a successful carnival yesterday. This incident is not related to the carnival.
"We are working with Greater Manchester Police to ensure that the local community is reassured and we'll do all we can to support the local community."
Chief Superintendent Wasim Chaudhry said police were working on the premise that the weapon used was a shotgun.
He said those injured were aged between 12 and in their 50s, and predominantly suffered injuries to their legs.
One has discharged themselves from hospital and the others are still being treated.
He said detectives were investigating the incident as attempted murder.
Mr Chaudhry said the motive for the attack remained unclear and officers were looking into whether it was targeted.
He added: "It would be obvious to any particular person that discharging a firearm in a large crowd like this is completely reckless."
Mr Chaudhry said: "In the early hours of today, at around 2.25 this morning, my officers got a report of the sound of two loud bangs in the Claremont Road area of South Manchester and officers were
quickly in attendance, within a minute in fact. They were both armed officers that attended and also unarmed staff.
"What they were faced with was a large crowd of a number of hundred people, several hundred people, in the area who were continuing to celebrate the Caribbean Carnival and a number of those people
had been injured and there was a state of panic which our officers had to contend and deal with.
"Following on from that it has been established that 10 people have received injuries which we believe are related to gunshots.
"At the moment those are pellet injuries, as they have been described, so our working hypothesis is it's probably a shotgun discharge.
"How many times it has been discharged isn't clear at this stage and forms part of our investigation."
Mr Chaudhry added: "We can't minimise the risk that the public were put into and the fact that this could have been far worse.
"We could have been dealing with life-threatening injuries and we could indeed be investigating multiple murders."

Anyone with any information should call police on 0161 856 4166 quoting incident number 297 of 12 August or the independent charity Crimestoppers anonymously on 0800 555 111.