Several Indian investors are looking to buy US stocks to escape the falling markets at home and get exposure to global markets that are rising in the current situation
Until now the situation of investing in the stocks of the foreign markets is just a hobby for many experienced stockbrokers or individuals in the country. But the situation now has changed. With the ease in the cross border investment rules, many people are looking to invest in the foreign economy/ stocks.
Vested finance, an investment firm that helps Indians to buy/sell US stocks has seen around 4000 new accounts being opened in March, which is double compared to February. Each month, the company expects a 30% increase in the overall new account openings. But this time, it has increased.
According to the official statistics, Vested finance has seen a $3.5 million invested by Indians in the US stocks in 3 months, until March. This is a huge increase, almost 5 times the stats in the previous quarter. Most of these investments are first-time investments from the app. The CEO of vested said that many people are investing in US markets as this gives exposure to not just the market of US but global markets as well since most of the company’s operations are carried out somewhere in the US.
Many of the retail investors are interested to invest in brands like Google, Netflix, and Facebook. Even there are sector belonging to cannabis and gene-editing CRISPR technology, which are not available in India
The equity markets of India has lost about one-fifth of their value this year. Even the value of the rupee is very weak currently. The dollar is up 6% against rupee this year. This also led to investments in foreign stocks, especially the US