Both stock exchanges BSE Ltd and National Stock Exchange (NSE) of India were closed on Tuesday on account of Holi, the festival of colours celebrated across the country.
Foreign exchange and wholesale commodity markets were also closed.
A day earlier, the BSE S & P Sensex and the Nifty 50 posted the biggest single-day fall in absolute terms as all major sectoral indices closed in the red with deep cuts.
The Sensex tumbled 1,942 points or 5.17 per cent at 35,635 while Nifty dropped 538 points or 4.9 per cent at 10,451.
The carnage at D-Street followed a slide in global peers as fears intensified over the spread of coronavirus outbreak and oil prices plunged.
Meanwhile, Asian shares bounced from historic lows on Tuesday amid speculation of coordinated stimulus from global central banks and governments calmed panic selling.
MSCI's broadest index of Asia Pacific shares outside Japan jumped nearly 1 per cent after shedding more than 5 per cent on Monday. Japan's Nikkei eased by 0.3 per cent but was well above early lows.