The Islamic State of Iraq and Syria (ISIS) has claimed responsibility for a deadly truck bomb attack at a crowded market in Baghdad that killed at least 76 people and wounded more than 150 others.

The Islamic extremist outfit, in a statement posted on its twitter accounts, described the bombing as a "blessed operation," reported CNN. It targeted Shiite militia Mahdi Army and members of the Popular Mobilization Units, who have been fighting the militant group in northern and western Iraq for more than a year.

A truck bomb exploded at Iraqi capital's popular Jameela market Shiite-dominated Sadr City neighborhood on Thursday, as HNGN reported. The bombing is one of the deadliest attacks on Baghdad since ISIS established a self-clamed Caliphate in parts of Syria and Iraq. 

"A refrigerator truck packed with explosives blew up inside Jamila market on Thursday morning. Many people were killed and body parts were thrown on top of nearby buildings," police officer Muhsin al-Saedi told Reuters.

"On Thursdays the market is especially crowded because people come from the other provinces to stock up on food for the weekend," an Iraqi official said, according to Al Arabiya.

International organizations have condemned the deadly attack and described it an attempt to ignite sectarian flames.

"This morning's truck bomb attack by Da'esh/ISIL on a crowded market place in north-eastern Baghdad, which killed and wounded many civilians, is yet another criminal act that seeks to stoke the sectarian flame by inflicting maximum casualties amongst Iraqis," the European Union said in a statement.