Oil prices, rising yields weigh on Nifty amid index expiry

Indian equity markets faced headwinds on Monday as multiple macroeconomic pressures converged to dent investor sentiment. Rising crude oil prices and elevated bond yields created a challenging backdrop for equities, while the monthly expiry of index futures and options contracts added additional volatility to trading sessions.

Within this bearish environment, information technology stocks emerged as a relative strength area, with IT majors bucking the broader market selloff. The sector's resilience provided some cushion to the overall market, though gains were insufficient to offset weakness elsewhere on the board.

Mid-cap and small-cap indices bore the brunt of selling pressure, sliding noticeably as institutional and retail investors alike trimmed exposure to higher-risk market segments. The flight to safety favored larger-cap and more defensive sectors, while domestically-focused mid and small-cap companies saw redemptions accelerate.

The convergence of crude oil concerns and yield pressures reflects growing anxiety over inflation and monetary policy tightening trajectories. With the expiry-related positioning now behind markets, investors will eye upcoming economic data and corporate earnings announcements for directional cues in the sessions ahead.