Question

She said, "I am going to market now".​

Answer 1

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She said that she was going to market then.

Extra Information ↴

• Inverted commas are removed in the indirect speech.
• Connecting word 'that' is used in the indirect speech.
• Verb of the reported speech is changed according to the form and sense of the sentence.
• Persons of the reported speech are changed.
• Words showing nearness, time or place are changed.

According to the rules, we have to change the present continuous tense into past continuous tense in the indirect speech. 'Now' is changed into 'Then'.