Mumbai, July 3 -- India stock benchmarks extended declines on Thursday, weighed down by continued profit booking, following last week's sharp rally.

At the end of the trading session, Nifty was down 48.10 points or 0.19 per cent at 25,405.30 and the BSE's Sensex was down by 170.22 points or 0.20 per cent, reaching 83,239.47.

"The domestic equity market continued to consolidate as profit booking followed last week's sharp rally," said Vinod Nair, Head of Research, Geojit Investments Limited.

However, investors remained cautious ahead of a potential US-India trade agreement, which kept the overall sentiment subdued.

On Wednesday, US President Donald Trump reaffirmed that India-US will soon strike a trade deal with "much less tariffs", a...