Mumbai, Dec 16 (PTI) Benchmark indices Sensex and Nifty declined in early trade on Tuesday as persistent foreign fund outflows and weak global market trends dented investors' sentiment.

The 30-share BSE Sensex declined 363.92 points to 84,849.44 during initial trade. The 50-share NSE Nifty dropped 106.65 points to 25,920.65.

From the Sensex firms, Eternal, Axis Bank, HCL Tech, Infosys, Tata Steel, and Bharat Electronics were among the major laggards.

However, Bharti Airtel, Asian Paints, Tata Motors Passenger Vehicles, and Titan were among the gainers.

In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index, and Hong Kong's Hang Seng index quoted lower.

US markets ended in negative territory on Monday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,468.32 crore on Monday, while Domestic institutional investors (DIIs) bought stocks worth Rs 1,792.25 crore, according to exchange data.

"Major equity indices on Wall Street closed lower amid a risk-off sentiment ahead of key economic data releases, including non-farm payrolls, retail sales, and inflation figures, which could influence the future course of monetary policy. Asian markets also opened lower, with cautious traders paring positions ahead of the Bank of Japan's crucial monetary policy decision later this week," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

On the domestic front, persistent FII outflows and continued pressure on the rupee near record lows remain key near-term headwinds, he said.

"However, strong participation from domestic institutional investors and retail flows continues to provide a cushion against deeper downside risks. In this backdrop, markets are expected to respect key technical levels rather than exhibit aggressive trending behaviour," Ponmudi R added.

Brent crude, the global oil benchmark, declined 0.54 per cent to USD 60.23 per barrel.

On Monday, the Sensex dipped 54.30 points, or 0.06 per cent, to settle at 85,213.36. The Nifty edged lower by 19.65 points, or 0.08 per cent, to 26,027.30. PTI SUM TRB

Stock markets decline as foreign fund outflows and weak global trends weigh; domestic buying cushions losses. Equity indices opened lower as persistent foreign institutional selling and weak global sentiment drove early declines, while domestic institutional and retail buying provided a cushioning effect; currency weakness near record lows and upcoming global economic and central bank events were noted as additional near-term headwinds, with markets expected to respect key technical levels rather than move in strong trends.