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Optical Illusions

Our eyes often play tricks on us, but scientists have discovered that some artificial intelligence (AI) systems can fall for the same illusions and this is reshaping how we understand the human brain.

Take the Moon, for example. When it’s near the horizon, it appears larger than when it’s high in the sky, even though its actual size and the distance from Earth remain nearly constant. Optical illusions like this show that our perception doesn’t always match reality. While they are often seen as errors, illusions also reveal the clever shortcuts our brains use to focus on the most important aspects of our surroundings.

In reality, our brains only take in a “sip” of the visual world. Processing every detail would be overwhelming, so instead we focus on what’s most relevant. But what happens when a machine a synthetic mind powered by artificial intelligence encounters an optical illusion?

AI systems are designed to notice details humans often miss. This precision is why they can detect early signs of disease in medical scans. Yet, some deep neural networks (DNNs)the backbone of modern AI are surprisingly susceptible to the same visual tricks that fool us. This opens a new window into understanding how our own brains work.

“Using DNNs in illusion research allows us to simulate and analyze how the brain processes information and generates illusions,” says Eiji Watanabe, associate professor of neurophysiology at Japan’s National Institute for Basic Biology. Unlike human experiments, testing illusions on AI carries no ethical concerns.

No DNN, however, can experience all the illusions humans do. Although theories abound, the reasons we perceive certain illusions remain largely unexplained.

Studying people who don’t perceive illusions provides clues. For instance, one person who regained sight in his 40s after childhood blindness was not fooled by shape illusions like the Kanizsa square, where four circular fragments create the illusion of a square. Yet he could perceive motion illusions, such as the barber pole, where stripes seem to move upward on a rotating cylinder.

These observations suggest that our ability to detect motion is more robust than our perception of shapes perhaps because we process motion earlier in infancy, or because shape recognition is more influenced by experience.

Brain imaging, such as fMRI, has also shown which regions of the brain activate when we see illusions and how they interact. Still, perception is subjective. A famous example is the “dress” photo from 2015, which viewers argued over as blue-and-black or white-and-gold. Such differences make illusions difficult to study objectively.

Now AI offers a new approach. Many AI systems, including chatbots like ChatGPT, use DNNs composed of artificial neurons inspired by the human brain. Watanabe and his colleagues investigated whether a DNN could replicate how humans perceive motion illusions, such as the “rotating snakes” illusion a static pattern of colorful circles that appear to spin.

They used a DNN called PredNet, designed around the predictive coding theory. This theory suggests that the brain doesn’t simply process visual input passively. Instead, it predicts what it expects to see, then compares this to incoming sensory data, allowing faster perception. PredNet works similarly, predicting future video frames based on prior observations.

Trained on natural landscape videos, PredNet had never seen an optical illusion before. After processing about a million frames, it learned essential rules of visual perception including characteristics of moving objects. When shown the rotating snakes illusion, the AI was fooled just like humans, supporting the predictive coding theory.

Yet differences remain. Humans experience motion differently in their central and peripheral vision, but PredNet perceives all circles as moving simultaneously. This is likely because PredNet lacks attention mechanisms it cannot focus on a specific area like the human eye.

Even though AI can mimic some aspects of vision, no DNN fully experiences the range of human illusions. “ChatGPT may converse like a human, but its DNN works very differently from the brain,” Watanabe notes. Some researchers are even exploring quantum mechanics to better simulate human perception.

For example, the Necker cube, a famous ambiguous figure, can appear to flip between two orientations. Classical physics would suggest a fixed perception, but quantum-inspired models allow the system to “choose” one perspective over time. Ivan Maksymov in Australia developed a quantum-AI hybrid to simulate both the Necker cube and the Rubin vase, where a vase can also appear as two faces. The AI switched between interpretations like a human, with similar timing.

Maksymov clarifies that this doesn’t mean our brains are quantum; rather, quantum models can better capture certain aspects of decision-making, such as how the brain resolves ambiguity.

Such AI systems could also help us understand how perception changes in unusual environments. Astronauts on the International Space Station experience optical illusions differently. For instance, the Necker cube tends to favor one orientation on Earth, but in orbit, astronauts see both orientations equally. This may be because gravity helps our brains judge depth something that changes in free fall.

With the Universe holding so many wonders, astronauts and the rest of us will be glad to know there are ways to study when our eyes can be trusted.

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Stock market

Indian equity benchmarks staged a notable intraday comeback on Monday, snapping a streak of weakness as investor sentiment improved following comments on India-US trade engagement. Both the Sensex and the Nifty climbed off their session lows, aided by buying interest in heavyweight stocks and short-covering after last week’s sharp decline.

By early afternoon, the Sensex had erased nearly 900 points from its lows to trade near 83,751, while the Nifty recovered to around 25,747. The rebound came after markets slipped below key psychological levels earlier in the day.

Market participants cautioned that the recovery appears tactical rather than structural. Analysts noted that the bounce was largely fuelled by short-covering after indices slipped below the 25,500 mark on the Nifty.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said that aggressive selling in previous sessions had pushed markets into oversold territory, attracting bottom-fishing around key support zones. This, in turn, triggered short-covering in index heavyweights.

Investor mood also benefited from comments by US Ambassador to India Sergio Gor, who struck a positive note on ongoing trade discussions. Adding to optimism, Gor indicated that President Donald Trump could visit India within the next one to two years, raising hopes of improving bilateral ties.

This geopolitical undertone helped stabilize sentiment after five consecutive sessions of losses.

Despite the headline indices moving into positive territory, underlying market breadth remained weak  a signal that the rally lacks broad-based participation.

Across major indices, declining stocks significantly outnumbered advancers:

  • On the Nifty Midcap 100, nearly three-fourths of stocks were in the red
  • The Nifty 200 saw more than 120 stocks trading lower
  • In the Nifty 500, declines outpaced gains by nearly three to one
  • Similar weakness was visible across the BSE 200 and BSE 500 indices

This imbalance suggests that sellers continue to dominate beneath the surface, even as benchmarks attempt a recovery.

Technical analysts remain cautious. Ruchit Jain, Vice President at Motilal Oswal Financial Services, pointed out that short-term momentum indicators have slipped into oversold zones, typically leading to brief pullbacks like the one seen today.

However, he emphasized that the Nifty has recently broken below its 50-day exponential moving average  a key support level. For the rally to sustain, the index would need to reclaim and hold above this zone. Resistance is expected near the 25,900–26,000 range.

Adding to the cautious tone is the upcoming earnings season, particularly results from major IT companies such as TCS and HCL Tech. Ajit Mishra, Senior Vice-President (Research) at Religare Broking, noted that uncertainty around earnings may be prompting traders to book profits or reduce exposure.

He warned that the rebound should not be mistaken for a confirmed trend reversal, stressing that a sustained move above 25,600 is needed to validate any meaningful recovery.

The sharp intraday rebound comes after a punishing week for markets. Over the past five trading sessions, the Sensex has dropped more than 2,180 points, while the Nifty has shed over 645 points, reflecting persistent selling pressure.

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Doomsday Aircraft

A Boeing E-4 aircraft operated by the United States Air Force was spotted landing at Los Angeles International Airport on Thursday, quickly becoming a focal point of online discussion. The sighting gained traction after videos of the aircraft circulated on social media, with users questioning the timing and purpose of its arrival.

Often nicknamed the “Doomsday Plane,” the E-4 is designed to serve as a mobile command center for senior US leadership during extreme emergencies. Its presence outside of expected military bases naturally drew curiosity, particularly at a moment of heightened geopolitical uncertainty.

The E-4 fleet is built to maintain command and control of US forces in the event of a national crisis. Outfitted with hardened communications systems and extended flight endurance, the aircraft allows leaders to operate even if ground-based infrastructure is compromised.

Despite its dramatic reputation, aviation experts note that E-4 aircraft regularly conduct training missions, maintenance relocations, and logistical flights. These movements are part of routine readiness protocols and do not automatically signal a developing crisis.

As videos spread, online users began linking the aircraft’s appearance to global political developments, fueling speculation without supporting evidence. Posts ranged from measured curiosity to dramatic interpretations, reflecting how quickly military imagery can be misread in the absence of official context.

No verified information has emerged suggesting the flight was connected to an emergency response or a change in national alert status.

US authorities have not issued a public statement regarding the aircraft’s landing. However, there has been no indication from the White House or the US Air Force that the flight was anything other than a routine operation.

Military aviation analysts point out that large civilian airports are occasionally used for logistical or maintenance reasons, especially for specialized aircraft that require specific ground support.

Requests for clarification have been submitted to both the White House and the Air Force. As of publication, no response has been provided.

Why Such Sightings Capture Public Attention

The E-4’s rare public visibility, combined with its association with national emergency planning, makes it a magnet for speculation. In an era of instant video sharing and global anxiety, even standard military movements can take on exaggerated significance.

Experts caution against drawing conclusions from isolated sightings, emphasizing that readiness aircraft are designed to be active and mobile during peacetime precisely so they are effective during crises.

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Iran Protests

Iran has entered a period of deep unrest, with protests stretching across the country for nearly two weeks and posing the most serious challenge to the ruling establishment in years. What began as economic frustration has grown into a broader expression of public anger, cutting across cities, campuses, and social groups.

Demonstrations have now been reported in roughly 180 cities across all provinces, signalling a level of geographic spread rarely seen in recent years. Protesters have taken to streets, universities, and marketplaces, voicing grievances that go far beyond prices and wages.

Economic Pressure at the Heart of the Protests

The initial spark came from Iran’s worsening economic conditions. Inflation has surged, the national currency has sharply weakened, and basic goods have become unaffordable for many households. Shopkeepers in Tehran were among the first to strike, an unusual development given their traditional alignment with the political establishment.

As the protests gained momentum, the focus widened. Demonstrators began targeting governance failures, corruption, and long-standing political restrictions, transforming an economic protest into a national political moment.

Government Response and Escalating Tensions

Iranian authorities have responded with a heavy security presence. Thousands have reportedly been detained, including minors, and dozens of deaths have been recorded amid clashes between protesters and security forces. Officials have acknowledged injuries among police and paramilitary personnel.

A nationwide internet shutdown has further heightened tensions, cutting off communication channels used by protesters and journalists. Even satellite-based services, which had previously provided limited connectivity, appear to have been disrupted.

Trump’s Warnings Add an International Dimension

US President Donald Trump has publicly warned Iranian authorities against using lethal force, stating that the United States would respond strongly if protesters were killed. While ruling out ground intervention, he has suggested punitive measures that would target Iran’s vulnerabilities.

Trump’s remarks follow a period of increasingly assertive US foreign policy actions, and his comments have injected global attention into Iran’s internal crisis. Analysts believe these statements may embolden protesters while simultaneously restraining the government’s response.

Tehran Pushes Back, Blames External Forces

Iran’s leadership has rejected accusations of repression, instead blaming foreign interference for the unrest. Supreme Leader Ayatollah Ali Khamenei accused outside powers of exploiting economic grievances to destabilise the country, while officials have condemned US statements as provocative.

At the same time, the government has attempted limited outreach, acknowledging economic hardship and offering modest financial relief. Critics argue these steps fall far short of addressing structural economic failures.

Iran has experienced waves of mass protests before, most notably in 2009, 2019, and 2022. However, observers note a key difference this time: the protests are rooted in economic survival rather than a single social or political trigger.

The unrest has reached smaller cities that historically remained quiet, suggesting a deeper level of desperation. Analysts warn that economic-driven movements are harder to defuse, as there are fewer immediate concessions the government can realistically offer.

Iran’s exiled Crown Prince Reza Pahlavi has publicly encouraged protesters to maintain discipline and scale, calling for coordinated nationwide actions. His involvement has drawn mixed reactions but has undeniably added momentum to the movement.

Whether the protests can sustain themselves remains uncertain. Much will depend on the response of security forces, the resilience of protesters, and the regime’s ability to manage a crisis rooted in economic collapse rather than ideology.

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India encountered renewed diplomatic and economic pressure on January 8, 2026, following two major policy decisions announced by US President Donald Trump. The first involves Washington backing a sweeping sanctions Bill that proposes punitive tariffs of up to 500% on countries purchasing Russian oil. The second is the United States’ decision to withdraw from the India-led International Solar Alliance, a move that has wider implications for global climate cooperation.

Together, the announcements have placed India in a difficult position, balancing energy security, strategic autonomy, and its relationship with the United States.

At the heart of the pressure lies the Russia Sanctions Act, a bipartisan Bill with overwhelming support in the US Congress. The legislation empowers the US President to impose severe secondary tariffs on countries that continue to buy or resell Russian oil.

President Trump has publicly endorsed the Bill, describing it as a powerful tool to curb Russia’s war financing. Senior lawmakers backing the proposal have explicitly named India, alongside China and Brazil, as key targets of the sanctions framework.

With the Bill expected to come up for a vote soon, the threat of sharply higher tariffs has become increasingly real.

The timing of the announcements is significant. US Ambassador-designate Sergio Gor is scheduled to arrive in New Delhi on January 12, beginning his tenure as Ambassador and Special Envoy to South and Central Asia.

Mr. Gor has previously stated that ensuring India ends its purchases of Russian oil is among Washington’s top priorities. His arrival is widely seen as the beginning of a renewed diplomatic push to secure a complete halt to Indian imports of Russian crude.

There are indications that India has already begun adjusting its energy sourcing. Reliance Industries recently confirmed that it did not receive Russian oil cargoes at its Jamnagar refinery for much of December and does not expect deliveries in January.

While Indian public sector oil companies briefly increased imports in late 2025, constraints on other major buyers and growing external pressure suggest that Russian oil imports are unlikely to return to earlier levels.

India has faced similar situations before. During earlier US sanctions regimes, New Delhi had entirely phased out oil imports from Iran and Venezuela, demonstrating its ability to recalibrate under sustained pressure.

India’s evolving stance has drawn cautious approval from parts of Europe. During diplomatic engagements in Paris, senior European leaders publicly welcomed the reduction in India’s Russian oil imports, framing it as a step toward limiting Moscow’s war financing.

Notably, these remarks went unchallenged by Indian officials present, suggesting an awareness of the broader geopolitical expectations surrounding energy trade.

Adding to the strain, the United States announced its withdrawal from the International Solar Alliance, an organisation founded by India and France and headquartered in New Delhi. The alliance, with over 90 member countries, was created to accelerate global adoption of solar energy.

When the US joined the alliance in 2021, it was widely seen as a validation of India’s leadership in renewable energy diplomacy. Its exit, along with withdrawal from multiple climate-related international bodies, is now being viewed as a setback for multilateral climate action.

The US decision has sparked concern among climate advocates and policymakers alike. Walking away from global renewable platforms weakens collective efforts to address climate change and undermines confidence in international cooperation.

For India, which has positioned itself as a champion of clean energy and climate partnerships, the move complicates efforts to maintain momentum in global solar initiatives.

India now finds itself at the intersection of competing pressures: safeguarding affordable energy supplies, managing geopolitical alignments, and preserving leadership in renewable energy diplomacy.

How New Delhi responds in the coming weeks particularly during high-level engagements with the new US Ambassador will shape not just its energy policy, but its broader strategic positioning in an increasingly fragmented global order.

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Greenland

For years, Donald Trump’s interest in Greenland was treated as political theatre  an outrageous idea floated for shock value rather than strategy. That assumption no longer holds. In the aftermath of the US operation in Venezuela, Trump’s language and posture suggest something more consequential: a willingness to reshape borders, influence sovereign nations, and openly challenge long-standing international norms.

What once sounded implausible is now being discussed seriously in European capitals.

Why Greenland Suddenly Matters So Much

Greenland is no frozen backwater. Strategically, it sits at the crossroads of the North Atlantic, commanding access to vital sea lanes that would be decisive in any large-scale conflict. During World War II, control of nearby waters shaped naval warfare. Today, the island’s importance has only grown.

The United States already operates a key military base there, integral to missile detection and early-warning systems. As Arctic ice melts, new shipping routes are emerging, transforming Greenland into a gateway between continents. China and Russia have taken note  and Washington has no intention of being left behind.

Security Argument or Strategic Overreach?

Trump argues that US control over Greenland is essential for national security. Yet critics point out that the United States already enjoys sweeping military access through agreements with Denmark, a NATO ally. Reinforcing defenses or expanding bases could be achieved without challenging sovereignty.

Denmark and Greenland’s leaders have repeatedly stated that while they are open to partnerships  including cooperation on rare earth minerals and infrastructure  the island is not for sale.

That distinction appears increasingly irrelevant to a White House that views power as leverage rather than consensus.

Resources Beneath the Ice

Beyond military considerations, Greenland holds enormous economic potential. Vast reserves of rare earth minerals, offshore oil, and gas could play a central role in future technologies and defense systems. As climate change makes extraction easier, the island’s value will only rise.

If access to resources were the real goal, negotiated agreements could serve all sides. Instead, Trump’s approach signals dominance rather than collaboration.

A Shift Toward Open Imperialism

Trump’s recent claim that he was effectively “running” Venezuela following the removal of its leadership marked a turning point. It suggested a move from provocative rhetoric to unapologetic control. The subsequent announcement that Venezuelan oil revenues would be managed under US oversight only deepened concerns.

To critics, this reflects a broader pattern: territorial ambition driven by legacy, symbolism, and power projection rather than diplomacy.

Europe’s Alarm Bells Are Ringing

European leaders are no longer dismissive. France, Germany, Italy, Poland, Spain, and the UK have publicly affirmed that Greenland belongs to its people. Denmark has warned that any attempt to seize the territory by force would effectively end NATO as it exists today.

The irony is stark. For decades, NATO feared threats from Moscow or Beijing  not from its most powerful member.

An Unequal Power Dynamic

Europe’s dependence on US military protection limits its options. While Denmark has been a steadfast ally, even suffering significant casualties alongside American forces in past wars, it cannot realistically defend Greenland against the United States.

This imbalance gives Trump extraordinary leverage and places European leaders in a diplomatic bind: how to resist without provoking a rupture they cannot afford.

Can This Actually Happen?

Despite the heated rhetoric, significant legal and political barriers remain. Any purchase or transfer of Greenland would likely require Congressional approval, European Union involvement, and complex treaty negotiations. The cost alone could run into hundreds of billions of dollars.

The question is whether US lawmakers  and voters  would support such an acquisition at a time when domestic economic pressures are mounting.

A Fragile Moment for the West

Some former US and NATO officials are urging restraint, warning that diplomacy, not coercion, has preserved Western stability for decades. But moderation appears increasingly absent from an administration emboldened by recent victories and unrestrained by internal opposition.

Greenland may never become “Trumpland.” But the fact that the possibility is now openly debated marks a profound shift in global politics.

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A newly released Congressional records reveal that one of the final Bills introduced by Representative Marjorie Taylor Greene seeks to completely dismantle the H-1B visa program. The proposal was submitted on the very day Greene stepped down from Congress, closing her five-year tenure in the House.

The timing has drawn attention across political and business circles, particularly because the H-1B program plays a critical role in staffing high-skilled positions across the US economy.

What the Proposed Bill Seeks to Do

Formally titled “To amend the Immigration and Nationality Act to eliminate the H-1B program, and for other purposes,” the Bill calls for changes that would shut down the H-1B visa route entirely.

If enacted, the legislation would prevent US companies from sponsoring foreign professionals under the program, ending a decades-old pathway relied upon by industries such as technology, engineering, healthcare, and scientific research.

Greene’s Exit Adds Context and Controversy

Greene’s resignation followed ongoing disputes with President Donald Trump and Republican leadership, marking a dramatic end to her time in office. Her departure has triggered a special election in Georgia, while the Bill itself remains symbolic for now, introduced without its sponsor present to advance it further.

The decision to file such legislation at the point of exit has raised questions about its intent and long-term viability.

Understanding the H-1B Visa Program

The H-1B visa allows US employers to hire foreign professionals for specialised roles requiring technical or academic expertise. Each year, the federal government issues:

  • 65,000 standard H-1B visas
  • 20,000 additional visas for individuals holding advanced degrees from US institutions

Demand routinely exceeds supply, leading to a lottery-based selection process. Indian professionals make up a significant share of approved applicants, especially in technology-driven sectors.

Recent Policy Shifts Under the Trump Administration

The Bill arrives against the backdrop of tighter immigration measures. In September, President Trump imposed a USD 100,000 fee on new H-1B visa applications, signalling a tougher stance on employment-based immigration.

This move has already raised costs for employers and sparked concern among global companies that rely on skilled foreign talent.

Where the Bill Stands Now

According to official Congressional records, the proposal has not yet been referred to key House committees, including:

  • Energy and Commerce
  • Judiciary
  • Ways and Means

Committee referral is the first formal step in the legislative process. As of now, no hearings have been scheduled and no votes have taken place, leaving the Bill at a very early and uncertain stage.

What This Means Going Forward

While the proposal has generated headlines, its future remains unclear. Without active sponsorship and committee momentum, the Bill faces significant hurdles. However, its introduction reflects ongoing divisions within US politics over immigration, workforce policy, and economic competitiveness.

For industries dependent on global talent, the debate around H-1B visas is far from over.

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Rupee to Dollar

The Indian rupee continued its downward trend on Monday, marking its fourth consecutive session of losses as global risk sentiment deteriorated. The domestic currency closed 8 paise weaker at 90.28 against the US dollar, reflecting sustained demand for the greenback amid heightened geopolitical uncertainty and cautious domestic markets.

Although falling crude oil prices offered some relief, it was not enough to offset the impact of a firm US dollar and subdued investor confidence.

Intraday Movement Highlights Persistent Pressure

In the interbank foreign exchange market, the rupee opened slightly firmer at 90.21 but came under pressure as the session progressed. It touched an intraday low of 90.50 before recovering marginally to settle at 90.28 on a provisional basis.

Since December 30, 2025, when the rupee closed at 89.75, the currency has weakened by 53 paise. Recent sessions have seen consistent pressure, with losses recorded on each trading day heading into the new year.

Geopolitical Developments Drive Dollar Demand

Forex market participants pointed to renewed geopolitical tensions following US military action in Venezuela as a key factor behind the rupee’s weakness. The escalation prompted investors to seek safety in the US dollar, strengthening it against most global currencies.

The dollar index, which measures the greenback against a basket of major currencies, rose by 0.24 percent to trade near 98.39, underscoring the broader safe-haven demand.

Crude Oil Decline Offers Limited Support

A notable counterbalance came from the energy markets, where Brent crude prices declined modestly to around USD 60.53 per barrel. Lower oil prices typically support the rupee by easing India’s import bill, but in the current environment, global risk aversion overshadowed this positive factor.

Market experts noted that continued softness in crude prices could help limit further downside for the currency in the near term.

RBI Reserves and Possible Intervention in Focus

Analysts also highlighted the role of India’s strong foreign exchange reserves, which rose by over USD 3.2 billion to USD 696.61 billion in the latest reporting week. The robust reserve position provides the Reserve Bank of India with ample room to intervene if volatility intensifies.

According to market expectations, any central bank action, combined with softer crude prices, may help stabilise the rupee around current levels.

Equity Markets Add to Cautious Tone

Domestic equity markets mirrored the cautious mood. The Sensex declined over 320 points to close at 85,439.62, while the Nifty slipped below recent highs to end at 26,250.30. Weak equities often add pressure on the currency by dampening foreign inflows, though foreign institutional investors were marginal net buyers in the previous session.

Near-Term Outlook for the Rupee

Looking ahead, currency traders are expected to closely monitor global macroeconomic cues, including US manufacturing data and further geopolitical developments. The USD-INR pair is likely to trade within a broad range of 90.00 to 90.60 in the near term, with volatility driven largely by external factors.

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Equity Markets

Indian equity markets delivered a confident performance in the first trading week of 2026, ending January 2 at record closing levels after weeks of consolidation. A mix of improving earnings expectations, optimism around the upcoming Union Budget, and sector-specific tailwinds helped indices move higher, while broader markets also showed steady participation.

After trading in a narrow range through most of December, investors appeared more willing to take positions, encouraged by early signals of resilient domestic demand and stable macroeconomic conditions.

One of the key factors supporting the rally was anticipation around December quarter (Q3FY26) earnings. Market participants expect corporate results to reflect steady consumption trends, improving margins in select sectors, and continued credit growth.

At the same time, expectations that the Union Budget may include measures to support growth, infrastructure spending, and manufacturing added to the positive undertone. Together, these factors helped lift sentiment across both frontline and broader indices.

Sector-wise, the auto space stood out, supported by encouraging December sales data that pointed to sustained demand across passenger and commercial segments. PSU banks also remained in focus as improving asset quality and expectations of faster credit expansion attracted buying interest.

The utilities segment gained traction on hopes of rising power demand and increased industrial activity. In contrast, FMCG stocks faced pressure, largely due to selling in ITC, which weighed on the otherwise stable defensive pack.

Broader markets outperformed benchmark indices during the week, with midcap stocks showing stronger momentum than large caps. Smallcaps also posted gains, though at a more measured pace.

Meanwhile, precious metals witnessed sharp profit booking. Gold futures fell nearly five percent during the week, while silver declined around 1.5 percent, reflecting shifting risk appetite and positioning after recent gains.

Weekly Market Performance Snapshot

By the close of the week, the Nifty 50 had gained 286 points, rising 1.1 percent to end at 26,329. The BSE Sensex advanced 721 points, or 0.85 percent, to settle at 85,762.

Among broader indices, the Nifty Midcap 100 climbed 1.74 percent, while the Nifty Smallcap 100 added 0.77 percent, underlining improving participation beyond frontline stocks.

What to Watch in the Coming Week

Looking ahead to the week beginning January 5, markets are expected to trade in a range with a positive bias. Investors will closely track provisional quarterly business updates and early earnings-related commentary.

Global cues may introduce some near-term volatility, particularly around geopolitical developments involving the US and Venezuela. Additionally, key global data points such as US payroll numbers, unemployment figures, services PMI, and inflation data from China could influence market direction. Movements in crude oil and precious metals prices will also remain on the radar.

While near-term fluctuations cannot be ruled out, the broader market tone remains constructive. Strong domestic fundamentals, improving sectoral trends, and expectations of policy support continue to provide a stable base for equities as the new year unfolds.

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In a development that has sent shockwaves across global politics, US President Donald Trump announced that Venezuelan President Nicolás Maduro had been captured by American forces during a covert military operation. According to Trump, the operation removed Maduro from Venezuelan territory and placed him aboard a US Navy vessel headed toward New York, where he is expected to face prosecution.

The announcement, made during a televised interview, immediately escalated tensions between Washington and Caracas, raising serious questions about sovereignty, international law, and regional stability.

Inside the Alleged Operation

Trump stated that the operation involved a rapid military raid on a heavily fortified location within Venezuela. He claimed Maduro was extracted via helicopter and transferred to the USS Iwo Jima, describing the mission as swift and forceful.

According to the US President, the raid resulted in minimal casualties among American forces, despite intense resistance. Trump said he observed the operation live, portraying it as a demonstration of US resolve and operational capability.

Charges Filed in the United States

Shortly after Trump’s remarks, US Attorney General Pam Bondi confirmed that Maduro had been indicted in the Southern District of New York. The charges reportedly include narco-terrorism conspiracy, cocaine trafficking, and weapons-related offenses involving machine guns and destructive devices.

Bondi stated that Maduro would face trial in US courts, reinforcing Washington’s long-standing position that the Venezuelan leader is involved in international criminal networks. Maduro and senior members of his government have faced similar allegations since 2020, though the circumstances surrounding this latest indictment remain contested.

Venezuela’s Account and Ground Reality

Officials in Caracas offered a sharply different version of events. A senior ruling-party leader claimed that Maduro and his wife were inside the Fort Tiuna military complex when the attack began, describing the incident as a “kidnapping” rather than an arrest.

Residents of the capital reported explosions, low-flying aircraft, and widespread power disruptions during the night. Visuals circulating on social media showed smoke plumes and tracer fire, later verified by international observers. Venezuelan authorities alleged that both military and civilian infrastructure had been hit during the operation.

Emergency Measures and Political Fallout

In the immediate aftermath, Venezuela’s government declared a nationwide state of emergency, granting expanded powers to the armed forces and suspending certain civil liberties. Vice President Delcy Rodríguez demanded proof that Maduro was alive and accused the United States of violating Venezuelan sovereignty.

Under the country’s constitution, Rodríguez would assume leadership if Maduro were formally removed from office, though no official transition has been announced. The situation remains fluid, with uncertainty over governance and potential internal unrest.

A Turning Point in US–Venezuela Relations

If confirmed, the capture of a sitting head of state by foreign forces would mark a historic and controversial moment in international relations. The incident could reshape diplomatic norms, trigger retaliatory measures, and further polarize political alliances in the region.

For now, the world watches closely as competing narratives emerge from Washington and Caracas, and as the broader implications of this operation begin to unfold.

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