Indian Trading Platforms Bring US Stock Investing to Local Investors

Major Indian online investment platforms are giving millions of local retail investors access to US stocks as domestic markets struggle and the rupee falls.

Growth and Platforms

Groww launched US equity trading earlier this month and offers more than 10,000 US stocks and exchange-traded funds, along with fractional shares. Groww accounts for over 29 percent of India's 46 million active investors across stock brokerages. Zerodha, India's second-largest trading platform with a 15 percent share of active clients, has started testing US stock access and plans a full launch soon. Angel One, which has 6.7 million active retail clients, also plans to introduce US stock trading.

Market Factors

Nvidia, SpaceX, Apple, Alphabet, Amazon, Micron and Meta are among the most popular companies with early users. India's Nifty 50 benchmark has dropped nearly 13 percent since the start of the year, while the S&P 500 has risen over 12 percent. Foreign investors have pulled a record 32.5 billion dollars from direct equities since January, based on data from the Indian depository NSDL. Resident Indians sent over 321 million dollars overseas for equity and debt investments in August, which is a 111 percent increase from a year earlier.

Risks and Concerns

Experts warn that rising overseas investments could add more pressure on the rupee when it is weak and US markets are strong. Analysts note that retail investors often chase whatever asset is going up. Industry watchers also caution that Indian regulators might rethink allowing retail investor access to US markets if participation grows too fast.

Context

Investing in overseas stock markets allows local investors to put their money into foreign currencies and global technology giants that are not available on domestic exchanges. However, moving money abroad involves dealing with currency conversion rates and cross-border regulatory limits set by Indian authorities.