AI Everywhere
getting up to speed has never been easier
Often, you find yourself needing to get up to speed on what is “priced in” for a specific sector or stock. AI can save you a lot of time summarizing the known knowns, allowing you to focus on the variant perception to make bank. We are progressively adding AI summaries to our dashboards to help with this. Starting with our Industry Dashboard, we will be rolling this out to individual stocks in the coming weeks and months.
Examples: Aluminium Industry Metrics and Reliance.
Also, thanks to @arunatma, who generously shared the data with us, our PMS Surveillance now has pre-2021 data as well. At that time, SEBI was only collecting the weighted-average performance numbers. So, we had to create a separate section for it. It may not make much sense to compare these numbers for services that offer multiple investment strategies now but some have stuck to offering just one for a long time (example: Banyan Tree Advisors).
Markets this Week
More here: country ETFs, fixed income, currencies and commodities.
Links
Research
Can A New Name Open Closed Doors? (OSF)
Personal names are visible markers of ethnic identity that can shape access to economic opportunity. we investigate how changing from a foreign-sounding to a name more typical in the native-born majority improves the labor market outcomes of immigrants and their children. We find that adopting a mainstream name increases non-Western immigrants’ earnings by approximately 30 percent.
Information Acquisition By Mutual Fund Investors (NBER)
Mutual funds create liquidity for investors by issuing demandable equity shares while holding illiquid securities. We study the implications of this liquidity creation by examining frequent trading suspensions in China, which temporarily eliminate market liquidity in affected stocks. These suspensions cause significant mispricing of mutual funds due to inaccurate valuations of their illiquid holdings. We find that investors actively acquire information about suspended stocks held by mutual funds, driving flows into underpriced funds. This information is subsequently incorporated into stock prices when trading resumes.
How Investors Pick Stocks (SSRN)
We conduct AI-driven field interviews with 1,540 actual investors, including many “millionaires,” across ten countries to examine how individuals pick stocks.
India
The RBI cut its key repo rate by 25 basis points and left the door open for further easing as it took steps to boost banking-sector liquidity by up to $16 billion to support a “goldilocks” economy. The central bank has now cut rates by a total of 125 basis points since February 2025, the most aggressive easing since 2019 (reuters). Fair to assume that we are near the bottom in terms of policy rates (livemint).
Rupee cracks below 90 to the dollar, hit by tariffs, capital outflows (reuters). The RBI will tolerate a weaker rupee as the country’s external sector confronts multiple headwinds including a wider trade gap and stalling of dollar inflows into the world’s fifth-largest economy (reuters).
The New Rent Rules 2025 is here and I hope that it leads to more organized rentals than the current mess (indiatoday).
India might permit self-certification of over 1,000 medical devices, supplies (livemint). India is easing its regulatory burden on businesses, but the battle against its inspector raj will be hard fought (livemint).
There is a certain consistency of policy-making across all three Modi governments. First, the goal of reform is always to build an economy based on indigenous innovation and entrepreneurship. Second, many complex changes are achieved through step-by-step iteration. Third, a flexible approach allows for heterodox policies and practical adjustments based on feedback from actual outcomes rather than theoretical predispositions (thehindubusinessline).
BYD has jumped to the fifth spot in India’s EV pecking order (livemint).
Transmission capacity has lagged India’s solar power production (livemint).
The ultimate irony of Trump’s approach is that it is producing precisely the outcome it sought to prevent: a more multialigned India, invested in multiple partnerships and less susceptible to bludgeoning pressure from the United States (foreignaffairs).
In its strongest action yet against a financial influencer, Sebi has barred Avadhut Sathe from the securities market and ordered the impounding of Rs 546 crore (indiatoday).
How the IndiGo crisis unfolded (livemint).
row
Trump warns Europe faces ‘civilizational erasure’ (politico).
Ten Jolting Takeaways from Trump’s New National Security Strategy (warontherocks).
Donald Trump’s bleak, incoherent foreign-policy strategy (economist).
How Europe can harness its economic power (engelsbergideas).
US sets 2027 deadline for Europe-led NATO defense (reuters).
Europe is going on a huge military spending spree (economist).
Brexit has been an unmitigated economic failure (telegraph).
AI-powered shopping tools helped drive a surge in U.S. online spending on Black Friday, as shoppers bypassed crowded stores and turned to chatbots to compare prices and secure discounts (reuters).
When compared with human drivers on the same roads, Waymo’s self-driving cars were involved in 91% fewer serious-injury-or-worse crashes and 80% fewer crashes causing any injury (nytimes).
America’s colleges have an extra-time-on-tests problem (theatlantic).
An early and overwhelming US lead in research output in the first decade of this century has been surpassed by China’s persistent long-term investment in fundamental research (ft).
The CFTC announced that leveraged spot crypto trading is now going live (coindesk).
In the five years to March 2000, the NASDAQ suffered corrections of more than 10% on at least a dozen occasions, each time recovering and eventually rising nearly 12-fold. Even at the bottom of its subsequent plunge, the index was still twice as high as it had been at the start of 1995. Those who simply ignored both mania and crash, and held on throughout, were richly rewarded. The professionals who correctly called the bubble, meanwhile, often were not.
Odds & Ends
You can get ChatGPT to help you build a nuclear bomb if you simply design the prompt in the form of a poem (wired)
Beijing believes that true AI dominance will come from systems capable of autonomous operation in the physical world—AI-powered robotics, or embodied AI (carnegieendowment).
Meme of the Week
