Benchmark equity indices Sensex and Nifty declined in early deals on Monday dragged down by heavy selling pressure in Kotak Mahindra Bank and uncertainty related to the India-US trade deal. Persistent foreign fund outflows and weak trends in Asian markets also hit investors' sentiment.

The 30-share BSE Sensex dropped 369.58 points to 81,093.51 in early trade. The 50-share NSE Nifty declined 104.3 points to 24,732.70. From the Sensex firms, Kotak Mahindra Bank tumbled nearly 7 per cent after the company on Saturday reported a consolidated net profit of Rs 4,472 crore for the June quarter, and flagged stress on the retail commercial vehicle portfolio due to adverse macroeconomic conditions.

The profit in the year-ago period was Rs 7,448 crore, but it had included gains of over Rs 3,000 crore on its stake sale in the general insurance arm, while the net profit for the March quarter stood at Rs 4,933 crore. Tata Consultancy Services, Bharti Airtel, Infosys and Eternal were also among the laggards.