Market Outlook – 12 January 2026

Asian markets opened on a positive note after strong US jobs data pushed Wall Street to fresh record highs on Friday. Meanwhile, crude oil prices moved up as protests intensified in Iran.

GIFT Nifty is trading about 30 points higher than Friday’s Nifty Futures close, indicating a positive start for Indian markets today.

Key Events & Data to Watch

US–Iran Tensions:
Donald Trump said that he and the US military are considering “strong options” in response to the situation in Iran, keeping geopolitical risks elevated.

Border Security Update:
A few drones were spotted along the Line of Control (LoC) on Sunday evening. The Indian Army activated counter-drone measures, after which the drones returned to the Pakistan side, according to defence sources.

Solar Manufacturing Boost:
The Andhra Pradesh government has approved Websol’s proposal to set up a 4 GW solar cell and module expansion plant at MPSEZ, Naidupeta, strengthening India’s renewable energy push.

Financial Sector Development:
Prudential Financial’s investment management arm is reportedly exploring the sale of its loss-making Indian asset management business, nearly 10 years after acquiring it from Deutsche Bank.

Federal Reserve Under Spotlight:
US Fed Chair Jerome Powell said he is under criminal investigation but will not give in to political pressure from Donald Trump, raising concerns about central bank independence.

India–Germany Ties:
German Chancellor Friedrich Merz is visiting India on his first Asia trip, aiming to expand cooperation in business and defence sectors.

Rare Earth Strategy:
The US plans to push for faster steps to reduce dependence on China for rare earth minerals, which are critical for technology and defence industries.

Dollar Weakness:
The US dollar saw its biggest drop in nearly three weeks after reports that the Federal Reserve faced grand jury subpoenas, reviving fears of political interference in monetary policy.

Critical Minerals Diplomacy:
Union Minister Ashwini Vaishnaw has arrived in the US for discussions focused on securing access to critical minerals.

Credit Card Rate Cap Talk:
President Trump warned that credit-card lenders could be violating the law if they ignore his call to cap interest rates at 10% for one year, which could impact the financial sector.