Mumbai, Sept. 26: The Nifty – the second bellwether for the bourses – today sank below the psychological level of 4000.

The 50-share index of the National Stock Exchange (NSE) closed at 3985.25 points, down 125.30 points, or 3.13 per cent, after investors pounded realty, banking, metals, capital goods, power and oil stocks.

The biggest losers on the Nifty included Ranbaxy, which fell 8.11 per cent, Unitech (7.96 per cent), and SAIL (6.16 per cent). This is the first time since May 2007 that the Nifty has dipped below 4000.

“This shows the weakness in the market. Our markets are underperforming as foreign institutional investors continue to exit, driving the stocks below their intrinsic value,” said Ambarish Baliga, vice-president of Karvy Stock Broking Ltd.

The Bombay Stock Exchange’s sensex ended at 13102.18, down 445 points, or 3.39 per cent.