More pain ahead for Indian shares: Stock market faces strong headwinds on rising oil, US bond yields

Indian equities face renewed selling pressure as oil stays above $100 a barrel and U.S. interest rates hover near multi-year highs. The BSE Sensex fell 1.52% on Monday and the Nifty 50 dropped 1.56%, with Brent crude futures heading toward $110 amid dwindling hopes for a quick U.S.-Iran deal. Meanwhile, the yield on the 10-year U.S. government bond has topped 5% and is at levels last seen around 2007. Analysts point to a “double squeeze”: higher oil costs lift India’s import bill, inflation and corporate expenses, while elevated U.S. yields encourage foreign investors to pull money out of India and favor safer markets. Foreign portfolio investors have sold about Rs 2.45 lakh crore ($30 billion) of Indian equities in 2026, already above full-year 2024 outflows.