The BSE Sensex slipped by 228 points to close at 20,315. The NSE Nifty fell 66 points to close at 6,120.

The key benchmark indices extended losses to hit fresh intraday lows in late trade as profit taking emereged after the market scaled 33-month high on Wednesday, 6 October 2010. IT, metal, realty and banking stocks led the decline. The market breadth turned weak, in contrast with strong breadth earlier in the day. Index heavyweight Reliance Industries reversed initial gains. The BSE 30-share Sensex was provisionally down 235.21 points or 1.14 %, off close to 275 points from the day's high and up close to 35 points from the day's low.

NSE's volatility index, India VIX, a gauge of traders' perception of near-term risks in the market based on options prices, rose 3.31% at 22.45. The index had declined 1.98% to 21.73 on Wednesday, 6 October 2010. The index had fallen 2.76% to 22.17 on Tuesday, 5 October 2010. It had risen 6.39% to 22.80 on Monday, 4 October 2010. The index had dropped 3.68% to 21.43 on Friday, 1 October 2010. India VIX is calculated based on the S&P CNX Nifty options prices. India VIX is a measure of the market's expectation of volatility over the next 30 calendar days.