Here's why Nifty Bank index tanked 5% on NSE amid rising bond yields

10-year government bond yield hardened to 6.23 per cent on Friday, up 0.05 per cent from 6.18 per cent on Thursday, February 25

Banking stocks got the sharpest knock at the bourses on Friday as rising bond yields in India and across the globe pointed at a possible reversal in low interest rate cycle. 

At 1:33 PM, the Nifty Bank index was trading nearly 5 per cent, or 1,718 points, down on the National Stock Exchange (NSE) compared with a 3 per cent slide in the benchmark Nifty50 index. The Nifty Private Bank and PSU Bank indices, too, were quoting 4.6 per cent and 3.7 per cent lower, respectively. 

Among individual stocks, Kotak Mahindra Bank, RBL Bank, and Axis Bank skid over 5 per cent