Mumbai: The BSE benchmark Sensex declined by nearly 80 points in early trade on Monday as funds and retail investors booked profits, a day of ahead of RBI monetary policy review.

The 30-share BSE index, which had gained over 287 points in the previous two sessions, declined by 79.69 points, or 0.47 percent, to 16,659.32.

In a similar fashion, the wide-based National Stock Exchange Nifty index shed 27.25 points, or 0.53 percent, to 5,021.35

Brokers said investors were cautious ahead of tomorrow's monetary credit policy and booked profits after recent gains.

Besides, 13.6 percent dip in third quarter earnings announced late last week by Reliance Industries Ltd (RIL), which has the heaviest weight on the BSE 30-scrip Sensex, also had some impact on the market, they said.    

Stocks of Reliance Industries fell by 3.39 percent to Rs 766.45.

Meanwhile, in the Asia region, Japan's Nikkei Index down by 0.14 percent in early trade on Monday.