Not sure if its a correction per say if listed companies collapse left right and center. Plus mega losses being posted by companies will keep many away from the market
Markets 101 - You need to have a global view of the markets. Don't just look at the NSE in your backyard. This by itself is a correction based on the quick rebound that happened a while ago. There has been no correction for the last 4 years.
Also I don't believe your notion of companies collapsing and mega losses. There maybe a going concern for only a few but not to the point of wrapping up operations. Individual investors (institutional ones are not) are the ones who are always scared and keep of the markets by converting their positions to low risks or even cash.
Those eight folks you see up there aren't losing any sleep at all with the current happenings. They are diversified and behave like institutional investors.