Fire tenders were rushed to the spot in the popular market's C Block which also houses many shops including a bookstore, a Delhi Fire Service official said.
No major damage or casualty has been reported in the fire which was quickly brought under control, he said.
Earlier in the day, electric lines in Laxmi Nagar area of east Delhi caught fire creating panic among local residents.
The fire, which started from an electric pole, caused power lines to snap and short-circuit. The flame due to burning of the insulation of wire sent up dense black fumes.