Around six shops have been gutted completely and no casualty is reported so far, polcie said.
The blaze erupted at a fancy store and spread to adjacent shops fast.
Fire and rescue teams rushed to the spot and evacuated people from the spot and launched mission to contain the spread of the blaze.
The fire was suspected to have been caused by an electric short circuit, police said.
Chalai market is one of the oldest and busiest markets in the capital city.