Sensex falls over 2 pct; land, tax reforms worries hurt sentiment

MUMBAI (Reuters) - The BSE Sensex and Nifty fell more than 2 percent on Tuesday, giving up most of their gains made in the previous two sessions, as stocks across the board declined on worries that key land acquisition and tax reforms would be delayed further.

Also, the rupee trading below the key 64 per U.S. dollar level is raising worries that foreign portfolio outflows may create a vicious cycle between rupee and domestic shares, fund managers said.

The Sensex fell 2.3 percent while the broader Nifty ended 2.4 percent lower finding resistance from their technically important 200-day moving average.

Fresh worries on retrospective taxation, upcoming monsoon and slower than expected recovery in earnings also continued to weigh on sentiment.

(Reporting by Abhishek Vishnoi; Editing by Anand Basu)