NSE's India VIX index - which gauges the expectation of volatility in the market - surged almost six percent to 18.10 on Thursday before cooling off, ahead of the expiry of monthly derivative (F&O) contracts due by the end of the session.

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The Sensex and Nifty50 are on track to finish the November F&O series down more than two percent each.

Benchmark equity indices fluctuated between gains and losses amid volatile trade on Thursday amid weakness across most global markets. The 30-scrip index rose as much as 239.6 points from the day's low at 58,199.5 to touch 58,439.1 on the upside in the morning. The Nifty50 climbed to as high as 17,454, having slid to as low as 17,375.1 earlier in the day.

Also Read: NSE India VIX soars over 17% as bears tighten grip; experts suggest IT havens

Market expert Mehraboon J Irani said the US dollar has been on a tear, which is "killing India at the moment".

"Let us understand one thing that India along with the United States market, the US markets have been the most overrated. Even if you see the euro, it's come from 1.18 to 1.12. Unless the dollar reverses India could bleed more. This will be the early stages of a significant correction."

On whether the bull market is over, Irani said "we will come to it as and when it happens".

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"I think expensive valuation stocks definitely come off sharply and inflation has never been so sticky, real rates are spiked, tapering- well, it is going to happen we all know it. There will be more and more noise coming as we go into 2022, which will have its own impact on the market. But interest rate hikes possibly would happen earlier than expected."

Irani also believes a short-term bottom could be in place, and "we could have a bounce which could possibly surprise a lot of sceptics".

"I am not disputing that anything can happen. But if 17,000 - which a lot of people believe could be a temporary bottom as of now - breaks, I personally believe the bleeding could stretch a little bit more. The point is, I still believe the bull market is intact and this is definitely a correction and caution right now is the watchword," Irani added.

At 11:50 am, the India VIX index was up one percent at 17.3.

First Published:Nov 25, 2021 11:34 AM IST