The National Stock Exchange of India (NSE) and BSE will remain closed on January 26 on account of Republic Day.
Wholesale commodity markets, including metal and bullion, will also remain shut. There will be no trading activity in the forex and commodity futures markets either.
On January 25, the Sensex settled 773.69 points or 1.27 percent lower at 60,205.06, while the Nifty declined 226.30 points or 1.25 percent to 17,892.
Adani Ports, SBI, IndusInd Bank, HDFC Bank and Cipla were among the biggest losers on the Nifty, while gainers were Hindalco Industries, Maruti Suzuki, Bajaj Auto, HUL and Tata Steel.
Among sectors, Nifty Bank index shed 2.5 percent, Nifty PSU Bank index fell 3.5 percent, Nifty Energy index declined 2 percent, while Nifty infra, information technology and pharma down more than 1 percent each.
The BSE midcap index fell 1.5 percent and smallcap index shed 0.8 percent.
"Markets went into a tailspin as investors wound up their positions on the last day of F&O expiry. Traders also liquidated their position ahead of the Adani Enterprises FPO, while migration from T2 to T1 settlement starting Friday also led to some offloading," said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
"While trading sentiment may remain volatile, the upcoming Budget and US Fed meet next week could fuel sharp sideways movement in coming sessions."
"Technically, after a double top formation, the market witnessed a sharp correction. On daily charts the Nifty has formed a long bearish candle and closed below the 18000 mark which is broadly negative."
"As long as the index is trading below 18000, the weak sentiment is likely to continue and below the same the index could retest the level of 17800. Any further down side could drag the index till 17700. On the flip side, above 18000, the index could move up to 18050-18100 levels," he added.
On January 25, Indian rupee closed 13 paise higher at 81.59 per dollar against Tuesday's close of 81.72.
