Ahmedabad has seen the worst of the communal violence
Hundreds of people took part, among them Indian Defence Minister George Fernandes and the Chief Minister of Gujarat, Narendra Modi.
A BBC correspondent in Ahmedabad says their message is simple - a plea for unity between Hindus and Muslims.
Another three people were reported shot dead by police in a suburb of the city on Sunday, after clashes between Hindus and Muslims.
On Saturday, two people died in the town of Baroda after what are thought to be false rumours triggered renewed clashes between the two groups.
Sporadic violence has continued in Gujarat since riots broke out there in February connected to the continuing dispute over plans to build a Hindu temple on the site at Ayodhya where activists demolished a mosque nine years ago.
'Ship of state firm'
In a speech on Saturday, Prime Minister Atal Behari Vajpayee warned those instigating violence in Gujarat that they would not go unpunished.,
"Let no one belittle the crime that has been perpetrated in Gujarat," he said.
"The inquiry will be fair and the guilty shall not go unpunished, irrespective of the community or the organisation that they may belong to."
He rejected claims by Sonia Gandhi, the Congress leader, that the unrest would deter foreign investors.,
"Let no one use this tragedy to make such sweeping generalisations about the happenings in India," the prime minister said.
Mr Vajpayee went on to say he believed that India was strong enough to withstand the clashes.
"India's secularism is too deep to be blown off course by temporary turbulence.
"The ship of the nation is strong and reliable enough to weather all storms and will soon leave the present turbulence behind."