The Bombay Stock Exchange Sensex fell by 191.64 points to close at 25,680.17, and the National Stock Exchange Nifty closed 67.80 points lower at 7,965.50 as Indian markets reacted sharply to the falling rupee and the impact of the government’s decision to demonetise Rs 500 and Rs 1,000 notes. The Nifty has dipped by 6.76% since the government discontinued the high-value notes.

The banking sector saw some of the biggest losses of the day during trading, with Axis Bank falling by 2.72%. HDFC Bank and ICICI Bank closed 1.64% and 1.72% lower. The NSE’s banking index dropped by 1.54%, with the auto index closing 1.34% down. The BSE realty index declined by 1.25%, according to Business Standard.

However, IT stocks performed well, with Tata Consultancy Services and Infosys rising by 1.5% and 1.23%. Analysts said the strong performances by software companies reflected the “underlying growth” in the United States. “Growth in the US is improving, and that means US companies will start investing,” said Ridham Desai, Morgan Stanley’s chief of India research and India equity strategist.

The rupee, which hit a record low of 68.86 against the dollar during intra-day trading on Thursday, has fallen by 3.9% against the US currency this year. Market analysts listed several reasons for the fall, including a huge demand for the greenback from importers, the chance of a federal rate hike and a poor opening by the domestic equity market.