Sensex falls 2 percent amid selloff in Europe

MUMBAI (Reuters) - India's stock markets fell more than 2 percent on Tuesday, tracking a steep fall in European equities and as sentiment turned cautious ahead of the expiry of monthly derivatives contracts later this week.

Both the BSE Sensex and the broader Nifty lost 2.07 percent each. The indexes gained as much as 0.56 percent each earlier in the session.

U.S. index futures were also trading lower, signalling a weak start for Wall Street.

(Reporting by Karen Rebelo in Mumbai; Editing by Anupama Dwivedi)