Explained: Why is stock market rising today even as Iran-US war escalates, oil prices cross $85

Indian benchmark indices surged despite escalating Iran-US tensions and oil crossing 85 dollars per barrel. Sensex jumped around 500 points to 77,555 and Nifty gained over 150 points to cross 24,200, with India VIX dropping 4 percent to 13.17. The rally was led by banking and financial stocks, while broader Asian markets also gained on softer US inflation data which reduced expectations of Fed rate hikes. Bank stocks rallied on improving balance sheets and stable liquidity, with analysts citing the TACO trade as the reason markets are shrugging off geopolitical risks.