Mumbai, Feb 6 (PTI) Benchmark indices Sensex and Nifty slid for the second consecutive day on Thursday amid caution ahead of the RBI's monetary policy decision and fresh foreign fund outflows.

The 30-share BSE Sensex dropped 213.12 points or 0.27 per cent to settle at 78,058.16. During the day, it tumbled 427.29 points or 0.54 per cent to 77,843.99.

The NSE Nifty declined 92.95 points or 0.39 per cent to 23,603.35 with 30 of its constituents closing lower.

Among Sensex scrips, Bharti Airtel, Titan, NTPC, State Bank of India, ITC, Tata Steel, Mahindra & Mahindra and Tata Motors were the major laggards.

Adani Ports, Infosys, Axis Bank, HCL Technologies, Tech Mahindra and IndusInd Bank were among the gainers.

Foreign Institutional Investors (FIIs) turned net sellers on Wednesday offloading equities worth Rs 1,682.83 crore, according to exchange data.

The Reserve Bank of India (RBI) on Wednesday started deliberations on the monetary policy and the decision will be announced on Friday.

"The benchmark indices experienced a moderate decline as investors awaited the RBI's decision on a potential rate cut amidst the ongoing trade war. The broader market remained cautious and in a consolidation phase despite the government's focus on boosting consumption to cushion lower growth," Vinod Nair, Head of Research, Geojit Financial Services, said.

In Asian markets, Seoul, Tokyo and Hong Kong settled in the positive territory. European markets were trading with gains. US markets ended higher on Wednesday.

Global oil benchmark Brent crude rose by 0.60 per cent to USD 75.06 a barrel.

The BSE barometer 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 SUM MR

RBI monetary policy decision prompts market caution and foreign investor sell-off ahead of potential rate change. Reserve Bank of India deliberations on an upcoming monetary policy decision and expectations of a potential rate change drove investor caution, prompting a second consecutive decline in benchmark indices and net selling by foreign institutional investors; market volatility was influenced by major lagging blue chips and global cues but the central regulatory trigger was the pending RBI policy outcome.