A fire broke out in a godown, off Ezra Street in the central business district, stacked with wooden boxes around 8.30pm on Wednesday.
Fifteen fire tenders were sent to the spot to control the blaze.
Fire and emergency services minister Sujit Bose, who was at the spot, said: “We received information about the fire around 8.10pm and by 9.40pm it was contained.”
Several electrical goods stores were affected.
Eyewitnesses said thick fumes began covering the area in the evening when rows of shops were crowded with customers buying lights and other items for Diwali.
Officials in the fire and emergency services department said firefighting was a challenge as the godown was located in a narrow lane lined with shops. Most shops sell electrical items like twinkling lights and other decorative items.
Traders said the fire was a blow to them around the time when sales are expected to peak ahead of the festival of lights.
Teams from the Disaster Management Group reached Ezra Street armed with saw-cutters to help the firefighters. Police had to stop traffic on Rabindra Sarani to facilitate firefighting.
The police said the godown, located on Parsee Church Street, off Ezra Street, was covered with a tin shade. It lacked fire-fighting measures.
Residents and a section of shopkeepers joined firefighters to bring the blaze under control.
“An electrical short circuit seems to have ignited the fire. A forensic report will reveal the actual cause,” said an official in the fire services department.