Indian indices ended nearly 2 percent lower on Wednesday, extending losses for the fourth consecutive session with Nifty falling below the 14,000-mark for the first time this year, dragged mainly by losses in the banking and financial space.

The big question now is whether the market is just letting off some steam or is this the beginning of a larger correction?

Speaking to CNBC-TV18, Jai Bala of cashthechaos.com, said that he believes a correction has started and expects the Nifty to head towards 13,100.

"I had said last week that the Indian markets are heading for 13,100 on the Nifty. The markets haven't had any significant correction in the last several months barring September where there was a minor dip. I had also pointed out that the main macro that is changing is the dollar index; the dollar index has put in a reversal signature. In fact in today's US market session it is likely to break marginally below 90 and then make a big reversal."

"Cryptos and precious metal I had pointed out that they have started the correction and now the equities have started the correction. If the dollar index is turning into an intermediate trend reversal, then the 13,100 objective that I am talking about could be conservative. So, we can have a bigger correction. But at the moment I assume the market is heading towards 13,100 on the Nifty," he said.

Arnab Das, Global Market Strategist at Invesco, said, "Specific concerns about India are probably at work, but I think the more important issue is that generally globally the reflation rotation that had been taking place very rapidly after the announcement of the success and expectations of vaccines is taking a bit of a pause or maybe even a bit of a reversal."

"So, the way to think about this is to take a step back and say that there had been a big rush into the markets into the reflation rotation and now it is not going to be a straight line," he said in an interview to CNBC-TV18.

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(Edited by : Bivekananda Biswas)