Here is your daily Market Wrap for 12th January,2026 where we take a look at the key headlines from the Financial Markets that drew attention across the globe, along with performance of Indian Equity Market Indices – broader and sector wise, as well as the institutional trading activity.
So let us get underway..
MARKET WRAP
The Indian Equity Indices ended today’s volatile session in green with VIX spiking, after a mid-session recovery to settle near highs of the day, rising from the lows of previous week. Despite positive global cues, the domestic markets opened lower and hit the intraday low, before witnessing a sharp mid-session recovery after US Ambassador Sergio Gor’s comments on a potential India–US trade deal. Though broader indices underperformed, with BSE midcap and smallcap losing 0.4 and 0.7% respectively.
Among sectors, metal rose 2% while PSU bank gained 0.7% and pharma, realty among others shed around 1%. As per Moneycontrol, more than 360 stocks hit 52-week low including Whirlpool, United breweries among others. And rupee closed flat, up 0.03% against the USD to move at Rs.90.24 per USD. Overall the market today was driven by volatility spike, as investors and retailers await clarity on the tariffs situation, and the India-US trade talks.
Finance Flashcards Newsroom
TOP HEADLINES
Ind-US trade talks on 13thJan, India to join US-led Pax Silica next month, says US Ambassador Sergio Gor
After assuming charge in New Delhi on Monday, US Ambassador Sergio Gor said India and USA continue to engage actively on trade issues, with next round of talks expected as early as tomorrow. Gor signaled continuity in engagement even as both countries navigate tariff disputes along with market-access concerns while also adding that India will be invited next month to join Pax Silica as a full member. This signals a major expansion of India–US cooperation in semiconductors, AI and critical supply chains.
Economists split on February easing as Retail Inflation spikes to 3-Month high of 1.33% in December
As per the Government data released on January 12, India’s retail inflation spiked in December to 1.33% compared to 0.7% in November, but stayed below RBI’s lower tolerance threshold of 2% for the fourth consecutive month. The easing of core pressures could lead to another 25bps in February according to Paras Jhasrai, associate director, Ind-Ra.
But a few economists believe central bank is likely to weigh in data from rebased CPI and GDP series before deciding the upcoming policy decision, while claiming inflation is expected to rise further in the coming months.
Trump vs Powell feud escalates after Federal prosecutors open criminal investigation into Fed chair
According to a report in BBC, Powell disclosed that the US DoJ served the agency with subpoenas and threatened criminal indictment over his testimony to a Senate committee about renovations to Federal Reserve buildings. Powell hit out at the unprecedented probe, which he believed was opened due to the central bank not lowering interest rates as quickly as Trump would have liked, despite repeated political pressure from the President.
Trump said he know nothing about the investigation, while Powell’s statement was the first time he has publicly hit out against DoJ and Trump, and cautioned that independence of US central bank is at stake. The news along with unrest in Iran sparked concerns, leading to a jump in price of precious metals, with Gold up 2.5% to an all-time high of $4624.53 per ounce.
EQUITY MARKETS RECAP
INDIAN MARKETS
As on 12th January, 2026 16:00 IST
US MARKETS
As on 12th January,2026 23:40IST
INDIAN MARKET WRAP
Indices
BSE Sensex and Nifty rebounded sharply after US Ambassador Sergio Gor’s comments on ongoing India-US trade talks lifted investor sentiment. Sensex finished 1000pts higher from the day’s low after the index tumbled 715 points during the morning trade while Nifty finished higher by ~107pts at 25790.25 after having tanked 0.81% in the morning. The rebound was further supported by value buying after markets declined for five consecutive sessions losing 2.5% in the previous week owing to different reasons including tariff concerns and foreign fund outflows.
Sector and Stock Movement
The sectors recovered on Monday after having ended the previous session in red on Friday, with Oil & Gas and PSU Bank continuing to gain and trade higher above the benchmark index even as IT declined.
While Auto and Realty tumbled to further lows, Nifty Bank index too recovered from day’s low , rising around 677 points to hit the intraday high at 59540.95. IndusInd Bank shares were top gainer on the index, rising more than 2% while ICICI bank shares too gained more than 1%.
Broader markets were marginally down with Nifty Midcap 100 down 0.1% while Smallcap 100 lower by 0.5%.
Institutional Trading Activity
On Monday, the FIIs/FPIs net sold Indian equities worth Rs.3638 crore while the DIIs net bought shares worth Rs.3769 crore, as per data on the exchanges.
The Learning of the Day
Let us learn about the difference between the two key terms in Finance-
Enterprise value & Equity value
Consider an example where you want to buy a small business, now these terms are different as these are used for different purposes here.
- Enterprise value is total value of the business, including any buildings, machines, cash, etc. It tells the real cost to buy the business and is indicative of a company’s full worth.
- Equity value, on the other hand, is money left for shareholders after paying all the loans, and is indicative of the shareholder’s wealth i.e. what they own.
Do share your thoughts on our today’s edition of the daily Market Wrap.
