Indian brokers open US stock access, retail funds flow to Nvidia and Apple
Indian brokers unlock US equity trading for retail investors, driving capital outflow to tech stocks amid local market weakness.
Several Indian online trading platforms have recently opened US stock trading features to retail investors, breaking the previous reliance on international banks and wealth management firms. Groww, which holds over 29% market share, has already launched the service offering more than 10,000 US stocks, ETFs, and fractional shares. Early users have shown a strong preference for tech giants like Nvidia, SpaceX, and Apple.
This trend is driven by three main factors: India's benchmark Nifty 50 index has fallen nearly 13% this year while the S&P 500 rose over 12%; the lack of large AI-leading companies in the domestic market; and the weakening rupee against the dollar prompting diversification into foreign assets. Data shows that foreign investors have withdrawn a record $32.5 billion from Indian equities since January, while remittances by Indian residents for overseas stock and bond investments surged 111% year-on-year in August.
As retail participation increases, regulatory risks are emerging. Nitin Jain, CEO of Kotak Mahindra Asset Management Singapore, warned that if a large number of general investors flood into the US market, Indian regulators may reassess whether to maintain the current level of policy openness.