Mumbai, Feb 6 (PTI) Benchmark indices Sensex and Nifty gave up early gains and were trading lower on Thursday amid caution ahead of the RBI's monetary policy decision and fresh foreign fund outflows.

The 30-share BSE benchmark Sensex climbed 280.38 points to 78,551.66 in early trade. The NSE Nifty went up 77.25 points to 23,773.55.

Later, both the benchmark indices gave up early gains and were quoting lower. The BSE benchmark traded 126.78 points lower at 78,141.80, and the Nifty quoted 42.85 points down at 23,653.45.

From the 30-share blue-chip pack, Mahindra & Mahindra, Titan, Tata Steel, ITC, NTPC, Bharti Airtel, HDFC Bank and Kotak Mahindra Bank were among the major laggards.

Power Grid, Bajaj Finance, Infosys, Tech Mahindra, HCL Technologies, Reliance Industries and Hindustan Unilever were among the gainers.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,682.83 crore on Wednesday after a day's breather, according to exchange data.

In Asian markets, Seoul, Tokyo and Hong Kong were trading in the positive territory.

US markets ended higher on Wednesday.

"All eyes are on Friday’s RBI MPC decision, with hopes for a rate cut to boost consumption," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.

Global oil benchmark Brent crude went up by 0.12 per cent to USD 74.70 a barrel.

The BSE bellwether gauge declined 312.53 points or 0.40 per cent to settle at 78,271.28 on Wednesday. The Nifty dropped 42.95 points or 0.18 per cent to 23,696.30. PTI SUM DR

RBI policy anticipation spurred market caution, eroding early equity gains amid foreign fund outflows and mixed global cues. Anticipation of the RBI monetary policy decision led to investor caution, causing Sensex and Nifty to give up early gains amid fresh foreign institutional outflows; sectoral divergence saw automobiles, metals, consumer staples and several banks lag, while technology, energy and select financial stocks outperformed, with market participants focusing on hopes for a rate cut to boost consumption and on mixed global cues including modestly higher crude.