The National Stock Exchange index Nifty today dipped to a two-month low of 3,982.30 points at 1030 hrs due to heavy selling by funds in financial and realty sector stocks after the collapse of US investment bank Lehman Brothers.

The NSE-50 dropped by 5.56 per cent to 3,982.30 after a terror strike in the national capital over the weekend also contributed to the downslide.

Investors were seen liquidating their positions in heavy-weight stocks.

Brokers said the collapse of Lehman Brothers and worries of a severe economic recession in the United States shook financial markets globally.

Among the prominent losers were ICICI Bank, HDFC Bank, State Bank of India, BHEL, RIL, Bharti Airtel, DLF, HDFC, Infosys Technologies, ONGC, Unitech, Satyam, Sterlite and Reliance Infra.

At 1045 hrs, Nifty was quoted at 3,986.05, down by 242.40 points or 5.56 per cent.