The article titled "CONFIDENCE TRAP: WHY AI MAKES US WORSE INVESTORS" is reproduced below:
CONFIDENCE TRAP: WHY AI MAKES US WORSE INVESTORS
Imagine you log into your investing app on a quiet Saturday morning. Your SIPs are compounding, and that small-cap fund you picked last year is finally showing double-digit growth. You feel smart. You feel in control. Then curiosity strikes. You open the new AI-powered chatbot and type: “Which small-cap stocks are undervalued right now?”. In two seconds, a perfect-looking reply appears—bullet points, ratios, and persuasive reasoning. It sounds right. But amid the fluency lies a question the machine never asks: What if I’m wrong?.
When fluency masquerades as wisdom Large language models (LLMs)—the technology behind AI chatbots—are built for fluency, not accuracy. They generate confident, smooth answers. To the human ear, fluency feels like competence. Behavioural scientists call this the illusion of knowledge: mistaking a polished explanation for real understanding. History has seen this before; in the 1990s, researcher Terrance Odean found that online trading’s ease made investors more confident but less successful.
Generative AI is simply the new interface for the same psychology. The faster the answer, the weaker the doubt. Behavioural finance shows investors lose not from lack of data, but from misjudging their own knowledge. Research by Barber and Odean found the most active traders earned the least. The reason for this is self-attribution: crediting success to themselves and blaming failure on luck. Each “smart” trade rewrote memory: I knew it all along. As confidence grows, it detaches from reality. Now, machines have been built that mirror this habit—faster and more convincingly.
Why we fall for it Humans trust confidence. An AI adviser never hesitates—it speaks with expert composure. That’s where the illusion of control takes root. When trading became a click, investors equated convenience with skill. With AI, this illusion deepens. You can ask, analyse, and act within minutes. Speed feels like superiority. But as Barber and Odean’s research showed, more confidence leads to more trading—and often, worse outcomes. Ease feels empowering; in reality, it’s expensive.
Machines echo our mistakes The hope was that algorithms would be rational. Evidence says otherwise. A recent study found that popular LLMs overestimated their correctness by 20–60%—speaking with absolute certainty even when wrong. That steadiness is deceptive. Like a rookie trader doubling down, the AI mistakes persistence for skill. Studies show that people trust confident AI responses more—even when those responses are inaccurate.
The perfect trap Combine these forces, and you have a perfect confidence trap. Generative AI’s endless data fuels the illusion of knowledge. Its frictionless design amplifies the illusion of control. Together, they push investors to act more frequently—believing their “machine-vetted” insight is superior. But as confidence rises, returns often fall. When the AI says, “Buy stock X—valuations are attractive,” the answer hides what matters: data recency, counter-arguments, and unquantifiable risks. AI confidence is the enemy of nuance.
How to use AI without losing your edge Generative AI is still a powerful learning tool. It can simplify annual reports, explain financial jargon, or outline industry trends. But treat it as an assistant, not an oracle. Use it to understand, not to decide. When it gives you an answer, ask: What could go wrong?. When it recommends an investment, verify the data yourself. If you’re trading more because your AI “sounded sure,” pause. Ask whether confidence—or evidence—is driving your action. Think of your AI as a brilliant intern: fast, articulate, but inexperienced and unaccountable. It deserves your guidance, not your blind faith.
The quiet discipline of doubt Investing is a battle between curiosity and certainty. Self-attribution rewrites our past, the illusion of knowledge makes us overrate our insight, and the illusion of control convinces us that one more click will prove us right. Generative AI doesn’t solve these biases—it amplifies them. The antidote isn’t fear; it’s cultivating what machines lack: the quiet, disciplined, and ultimately profitable power of doubt.
Simarjeet Singh is assistant professor at GLIM-G; Hardeep Singh Mundi is assistant professor at IMT-Ghaziabad.
The article related to the SEBI conflict of interest disclosure, titled High-level panel submits report on conflict of interest, disclosure norms for SEBI officials, is reproduced below:
A high-level panel submitted a report on conflict of interest and disclosure norms for SEBI officials. This panel was formed under the chairmanship of Justice (Retd) Madan B. Lokur.
The panel's report recommended disclosure norms for SEBI officials, which include members of its board and the whole-time directors. These recommendations address conflicts of interest arising from their past professional, familial, or personal associations.
Key proposals include requiring officials to disclose direct or indirect relationships with entities that are under investigation or review. Additionally, the panel proposed setting up a mechanism for whistleblowers, implementing digital recording of proceedings, and establishing norms for post-retirement employment.
Flexible workspace provider WeWork India Management reported a sharp drop in quarterly profit on Monday despite record revenue, as its year-ago earnings were boosted by deferred tax benefits.
In its first quarterly results since its stock market debut last month, consolidated revenue from operations climbed 22.4% to ₹575 crore ($65.42 million). This rise was attributed to large enterprise clients employing more than 1,000 people who boosted occupancy rates. This investor backing reflects the demand for integrated office spaces as global firms expand in India to leverage its cost-effective, English-speaking, and tech-savvy workforce. This trend has positioned India among Asia-Pacific’s top office markets, alongside Japan and Singapore.
The company, which licenses its brand from its now-bankrupt US namesake WeWork Global, reported a sharp drop in profit to ₹6.29 crore. This drop occurred because the earnings from a year ago were boosted by a ₹235-crore tax credit.
WeWork India is majority-owned by Bengaluru-based developer Embassy Group. It offers workspace solutions ranging from private offices to flexible co-working spaces, with membership plans including day passes and all-access subscriptions, priced up to ₹15,000 per month.
The article concerning the car blasts is reproduced based on the information provided in the sources:
Car blast near Delhi’s Red Fort kills 9, injures several
At least nine people were killed and 21 injured on Monday after an explosion ripped through a clutch of vehicles on an arterial road near the historic Red Fort in Delhi during the evening rush hour. Other sources reported that 8 were killed, several injured in the car blast near the Capital's Red Fort.
The blast took place at 6.52 pm when a slow-moving white Hyundai i20 car stopped at a traffic signal, close to the Red Fort metro station in the heart of old Delhi. The high-intensity blast was heard as far as 2 km away, triggering panic. The explosion set the car on fire, and the ensuing blaze engulfed at least six cars, two e-rickshaws, one auto, and a bus. Visuals showed debris scattered across the road at an intersection with vehicles mangled and burnt, and twisted metal strewn around.
The first call to the Delhi Fire Department came at 6.55 pm, and the fire was doused at 7.29 pm. The first victims were rushed to the Lok Nayak Jaya Prakash Hospital. Immediate identification of victims was tough due to the extent of severe burns. The only two victims identified were Ashok Kumar, a 34-year-old resident of Amroha, UP, and Amar Kataria, a 35-year-old resident of Srinivaspuri, Delhi. Among those injured was a hawker who sold masks and sustained glass and metal stuck to his thigh, face, and abdomen.
Official Response and Investigation
Union Home Minister Amit Shah confirmed that the explosion occurred around 7 pm. He stated that teams from the Delhi Crime Branch and Delhi Special Branch arrived within 10 minutes, and the National Security Guard, National Investigation Agency, and Forensic Science Laboratory were investigating the incident. Authorities did not specify the reason for the explosion, the circumstances around the incident, or whether it was a terror attack. However, a senior Special Cell officer noted that no nails, no splinters, no shrapnel, no wires, or chemicals were found at the spot.
Prime Minister Narendra Modi reviewed the situation with Home Minister Amit Shah and other officials, offering condolences to those who lost loved ones.
Gurugram Police identified the car as a white Hyundai i20 registered in Gurugram, Haryana, to a man named Salman. Salman sold the vehicle about a year and a half ago to Devender, a resident of Okhla. Devender has been arrested and both he and Salman are being questioned by Delhi Police to trace the subsequent sale and establish the complete chain of ownership. The car was later sold to someone in Ambala.
The explosion prompted authorities to sound a high alert in the Capital, the adjoining states of Haryana and Uttar Pradesh, and across cities such as Mumbai, Hyderabad, and Kolkata, as well as in the Delhi Metro, Red Fort, government buildings, and the airport.
The article titled "The Modi government's social spending" (also identified in the source as "The social spending in the Modi government's ten years has been driven by State governments, despite cuts in central transfers") is reproduced below:
The social spending in the Modi government's ten years has been driven by State governments, despite cuts in central transfers
Broadly, it can be stated that the social spending by the Modi government has been driven by State governments, despite cuts in central transfers. Before the Modi government, Central transfers to State governments were either mandated by the Finance Commission or conducted through various schemes/grants of the central government.
The Modi government has recast the central spending architecture, making two major changes:
- The reduction of the share of central transfers to States (from the central government's gross revenue).
- The replacement of many previous schemes (including social spending schemes) with schemes that were either fully sponsored by the Centre or required the States to share a significant proportion of the cost.
This shift places a major burden on State governments. However, the data suggests that States have absorbed this burden and driven the growth in social spending.
When looking at total social expenditure (Centre plus States) as a share of the total budget, States currently account for approximately 85% to 90% of the total social spending. This proportion is a higher share for the States compared to the previous UPA-II regime (2009-2014). Over the first decade of the Modi government, social spending by the States increased both in absolute terms and as a share of their total budgets, while the Centre's share in total social spending decreased.
An analysis of the components of social spending reveals that the greatest increase occurred in sectors where the responsibility for expenditure lies primarily with the States, such as education and healthcare. This growth is likely due to the need to cater to a burgeoning and increasingly urbanized population, which requires more social services.
The article titled "Home Sales Volume may Grow 19% in FY26 Despite Volumes Staying Flat" is reproduced below:
Home Sales Volume may Grow 19% in FY26 Despite Volumes Staying Flat
Set to compound 6.5% CAGR and rising prices in the mid-segment keep expectations of a robust growth.
The volume of home sales is expected to grow 19% in fiscal year 2026 (FY26). This growth is anticipated despite the fact that volumes are staying flat.
An Imbalance An imbalance is noted in the market dynamics:
- The affordable segment accounts for 43% of the total supply, while 42% of the demand is concentrated there, reflecting a 103K units supply overhang in this category.
- The mid-segment, spanning $140K-$330K (₹10-25 million), has only 28% of the supply but accounts for 40% of the demand, resulting in a 43K units supply shortage.
The article concerning the Fujiyama IPO is reproduced below:
Fuijyama Power to float ₹288 cr IPO
Solar power solutions provider Fuijyama Power plans to float a ₹288-crore Initial Public Offering (IPO).
IPO Details and Timeline:
- The public issue is composed of a fresh issue of shares.
- Fujiyama Power, which provides solar power solutions, has set a price band of ₹216–228 per equity share for its IPO.
- The public issue will open on November 12 and close on November 14.
- The overall issue size is approximately ₹288 crore.
Purpose of the Offer:
- The IPO aims to raise capital to fund the company's manufacturing capacity expansion.
- The proceeds will be used to establish a new production line or facility for manufacturing photovoltaic (PV) modules and solar panels, alongside the existing setup.
- The company plans to manufacture products including PV modules, solar panels, solar charge controllers, and other ancillary products.
- Fuijyama Power also seeks to grow its construction chemicals and high-performance coatings businesses.
The article titled Norway wealth fund critical of Novo board shakeup is reproduced below:
Norway wealth fund critical of Novo board shakeup
Norway’s sovereign wealth fund, Norges Bank Investment Management (NBIM), is among the investors who are renouncing a revamp of the board of directors at Danish obesity-drug maker Novo Nordisk A/S.
The wealth fund’s decision to refrain from supporting Lars Rebien Sorensen’s bid to become chairman underscores the tensions between Novo Nordisk’s dominant shareholder—the Novo Nordisk Foundation—and its minority investors.
Novo Nordisk is holding an extraordinary general meeting on Friday to elect new board members. More than half of the board members, including Chairman Helge Lund, are stepping down following a dispute with the foundation over the pace of change.
NBIM is abstaining from voting on all five proposals to elect the chairman and four board members at Friday’s meeting. The California State Teachers’ Retirement System also plans to vote against the proposed changes.
Sorensen, who chairs the Novo Nordisk Foundation, controls about 77% of the Ozempic and Wegovy maker’s shares. His nomination of himself to lead the board prompted scrutiny of the company’s corporate governance.
The previous management, led by former chief executive Lars Fruergaard Jorgensen (ousted by Sorensen in May), was allegedly too slow to respond to challenges in the key US market. These challenges included increased competition from rival Eli Lilly & Co. and copycat versions of its blockbuster drugs. Sorensen is now backing new CEO Maziar Mike Doustdar, who is driving a "performance culture" and a sweeping overhaul that includes shuttering business units and cutting about 9,000 jobs worldwide.
Despite the pushback from NBIM and others, the appointments are expected to pass since the foundation controls the majority vote. The State Board of Administration of Florida and California Public Employees’ Retirement System intend to support the new board appointments.
The article titled "Night temperatures drop, severe cold wave seen over N-W as winter arrives" is reproduced below:
Severe cold wave conditions prevailed in isolated pockets over North-West India as winter arrived. The minimum temperatures were below normal by 5-10 degrees Celsius over parts of North, North-West, and Central India, along with parts of Gujarat. These clear skies, combined with dry and smoke-free air, are aiding the sharp drop in mercury.
Key Temperature Readings:
- The lowest minimum temperatures recorded on Monday were 5.7 degrees Celsius at Naliya, Gujarat, and 6.3 degrees Celsius at Adampur, Punjab.
- Other low minimums included 7.2 degrees Celsius at Mandira, Haryana, and 7.3 degrees Celsius at Ambala, Haryana.
Other Conditions:
Cold wave conditions also prevailed over Vidarbha, Madhya Pradesh, East Rajasthan, Marathwada, and Gujarat. These cold conditions are expected to continue for four days. Light rain or drizzle is forecast over isolated pockets in coastal Tamil Nadu and Kerala for 2-3 days. Delhi received 2.3 mm of rain on Monday, which is expected to help the Capital's air quality improve from 'severe' to 'very poor' over the next two days. Delhi's air quality is expected to remain in the 'very poor' category until Wednesday.
The article titled ‘Indian market better bet than other EMs’ is reproduced below:
‘Indian market better bet than other EMs’
Manish Gunwani, Head of equities at Bandhan AMC Ltd., stated that the one-year time correction has trimmed the valuations even as earnings growth in the second quarter (Q2, ended September) exceeded low expectations, making Indian markets a better bet than other emerging market (EM) peers.
Market Dynamics and Valuations:
- Positive macros and demand boost driven by fiscal and monetary stimuli are expected to drive earnings higher and attract foreign investor inflows, conditional upon a weaker dollar.
- The earnings expectations for Q2 were muted, but the actual numbers performed slightly better than subdued expectations in sectors like IT and banking.
- Other Asian markets, such as South Korea, Taiwan, and China, have seen growth between 30% and 50% in calendar 2025, which has narrowed the relative valuation gap between them and India.
- Prospects for foreign portfolio flows look much better now. If the dollar remains weak, India is expected to receive net positive Foreign Institutional Investor (FII) flows.
- India deserves a valuation premium due to stable and positive macros.
- With an expected earnings growth revival, valuations should not look excessive from an FPI flows perspective.
- Gunwani believes there is no downside to current multiples, but also no multiples expansion.
- Select small-caps have the potential to grow much faster than large-caps, offering potential for generating alpha through active stock selection.
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