When I transfer an image from S3 to Nexus 4, Play store is opened. However, for contacts it works well and good. Do I need any app for transferring files over NFC?
The image transfer from S3 uses S Beam, which is a proprietary technology used by Samsung. It doesn't use NFC for the actual data transfer, but instead creates a WiFi Direct (ad-hoc) network between the devices and sends the image over WiFi. NFC is just used for "pairing" the devices. Since Nexus 4 is a vanilla Android, it doesn't have the necessary application for this, and I suspect this is why it opens the Play Store.
Instead, most NFC-capable Android devices support Android Beam, which uses Bluetooth instead of WiFi Direct to transmit the data. There is a suggested solution in another question that could work for you.