Benchmark indices Sensex and Nifty dropped in initial trade on Thursday dragged by persistent foreign fund outflows, with investors staying on the sidelines ahead of the earnings season.

TCS is kick-starting the December quarter results calendar on Thursday.

The 30-share BSE benchmark Sensex dropped 284.12 points to 77,864.37 in early trade. The NSE Nifty dipped 86.8 points to 23,602.15.

From the 30-share blue-chip pack, Tata Motors, Larsen & Toubro, Zomato, State Bank of India, Sun Pharma, Power Grid, Bajaj Finance and NTPC were the major laggards.

Kotak Mahindra Bank, Infosys, Mahindra & Mahindra, Tata Consultancy Services and Asian Paints were the gainers.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,362.18 crore on Wednesday, according to exchange data.

In Asian markets, Seoul and Hong Kong traded in the positive territory while Tokyo and Shanghai quoted lower.

US markets ended mostly in the green on Wednesday.

Global oil benchmark Brent crude dipped 0.12 per cent to USD 76.07 a barrel.

The BSE benchmark declined 50.62 points or 0.06 per cent to settle at 78,148.49 on Wednesday. The Nifty skidded 18.95 points or 0.08 per cent to 23,688.95.

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