Major Indian online investment platforms are now enabling millions of retail investors to trade U.S. stocks, a move that marks a significant shift in the investment landscape. Previously, access to U.S. markets was largely restricted to wealthier individuals through global banks and wealth management firms.
Groww, which serves over 29% of India's 46 million active investors, recently launched U.S. equity trading, allowing users to invest in over 10,000 U.S. stocks and ETFs. Popular companies among early adopters include NVIDIA, SpaceX, Apple, and Amazon.
Zerodha, another major platform with a 15% market share, is also preparing to offer U.S. stock trading, while Angel One is reportedly planning a similar launch. The growing interest in U.S. stocks, particularly in technology, is attributed to the Indian stock market's underperformance—evidenced by a nearly 13% decline in the Nifty 50 index this year compared to a 12% gain in the S&P 500.
Additionally, the depreciation of the Indian rupee against the dollar is prompting investors to diversify their portfolios into foreign currencies. With record outflows of $32.5 billion from foreign investors in Indian equities this year, the trend of Indian investors seeking opportunities abroad is intensifying.
This shift is reflected in the significant increase in outward remittances for investments, which rose 111% year-over-year. However, experts caution that as retail participation in U.S. markets grows, regulatory scrutiny may increase, potentially impacting future access for Indian investors