Sensex falls 2 percent amid weak European markets

MUMBAI (Reuters) - India's stock markets fell 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.

The BSE Sensex was down 1.92 percent at 2:50 India time (0920 GMT), while the broader Nifty was down 2 percent.

Both indices gained as much as 0.56 percent each earlier in the session.

(Reporting by Karen Rebelo in Mumbai; Editing by Sunil Nair)