Please find below the 5 charts that tell interesting stories on Markets and Investing.

 

1) Countries with the Highest Default Risk in 2022:

 

After Sri Lanka, which is the next country to default?

 

El Slavador is most likely to default next on its debt obligation.

 

Pakistan is ranked 4th, Brazil is ranked 11th and Turkey is ranked 20th.

 

Thankfully, India is not in the list of Top 25 Countries with highest default risk. 

 

 

2) Indian Rupee has hit 80. Where will it go from here?

 

As of now, INR appears overvalued by about 5% on REER (Real Effective Exchange Rate against 40 Currencies)

 

YTD (Year To Date), INR is down 7% vs. USD, and yet it has outperformed the EM currency index

 

In short term, INR may stay in stress, but In long term, INR may stabilise at ~80 after FIIs start coming back to India. 

 

3) Yearly FII Flows in Emerging Asia:

 

1) India saw maximum FII Inflows in 2019, 2020 and 2021.
2) In 2022, India is now seeing one of the highest outflows.
3) Looking at the pattern, when FIIs come back to India in future, then flows are going to be strong & market will see big rally.

 

 

4) FIIs have started coming back to India:

 

Foreign funds are showing signs of a return to Indian equities as recent declines in oil prices brought some reprieve.

 

Overseas investors have bought a net $1 billion of stocks last week after dumping ~$30 billion In the last 9 months.

 

Lets hope that the worst is over and FIIs continue to invest in India.

 

 

5) We all are doing very good:

 

In less than forty years, billions of people have improved their lives and escaped extreme poverty.

 

In 1981, ~55% of Indian population was below the Global Poverty Line.

 

Now only ~11% of people are below Poverty Line.

 

Something to be happy about.

 

Read more similar articles in our blog – https://alphacapital.in/blog/

 

Best Regards

 

Dr. Mukesh Jindal CFA, CFP, CAIA, Ph.D.

 

Alpha Research