New Delhi, May 29 -- Indian bonds are under pressure due to the Middle East conflict, which has pushed up the prices of crude oil. Rising prices of this key commodity are a major factor behind inflation, which could drive the RBI to cut rates.

However, in these challenging times for bonds, there are still options and avenues for the retail investor to benefit.

"The biggest external factor for Indian bond markets right now is crude oil," says Bharath Rathore, Executive Director, Anand Rathi Wealth Limited. Historically, a $10 per barrel rise in crude can increase retail inflation by around 0.2% and wholesale inflation by nearly 0.5%, which usually pushes bond yields higher as markets price in inflation risks.

Current geopolitical tensio...