How to Invest & Buy in US Stocks Markets from India 2023 (2024)

FAQs

Can I invest directly in US stock market from India? ›

Yes, Indians can invest in the US stock market. There is more than one way to buy and hold US stocks in your portfolio. Direct equities, ETFs, and mutual funds are just one of the few popular options. You can invest in US stocks in two ways from India – indirect and direct.

According to the mandate given by the Reserve Bank of India, all Indian mutual funds registered with the Securities and Exchange Board of India (SEBI) are permitted to invest in international markets up to a limit of $7 billion, and investments in international ETFs have a limit of $1 billion.

Indian investors are subject to a flat tax rate of 25% on earnings from dividends of US stocks, which is comparatively lower than the tax treatment for other foreign investors due to the US-India tax treaty.

Yes – investors from India can invest in the US stock market. If they are interested in diversifying beyond Indian stocks and financial instruments, beyond the Sensex or the Nifty 50, Indian investors can do so by investing in the S&P 500, Dow Jones, Nasdaq or other US listed companies.

Among these five stocks, Zomato is expected to give handsome returns of nearly 54% in 2023. The other four are predicted to give returns in the range of 24-37%. Meanwhile, among companies with a market cap of less than Rs 5,000 crore, Arvind Limited is expected to give a return of 63% this year.

The first option for Indian investors to invest in US stocks is by opening an overseas trading account with a domestic broker. Indian investors can open an overseas trading account with a domestic broker like HDFC Securities, ICICI Direct, or Kotak Securities.

Which platform is best for US stocks in India? ›

You can opt for foreign brokers like Ameritrade, Charles Schwab and others that have an Indian presence to start directly investing in the US stock market. NSE IFSC - You can also trade US stocks through the NSE IFSC, a wholly-owned subsidiary of the National Stock Exchange (NSE).

At present, Zerodha does not facilitate investments in stocks listed on foreign stock exchanges. Still need help?

Volatility. When compared to Indian markets, the US markets have been less volatile in the long run. Indian equities have shown great volatility, with bigger swings in returns over the years. This is another reason experts recommend diversification when it comes to investing, since risks are spread out and diminished.

Taxability Risks

If the sector that you are invested in is at the receiving end of certain tax increases, then all companies can suffer and their stocks can tumble. Also, talking about tax, as an Indian investor, you need to keep the types of taxes in mind – capital gains tax and dividend tax.

An investment of up to Rs. 1 lakh gets deduction under Section 80C. Long-term capital gains are tax-free.

How Much Can I Invest in US Stocks? The Reserve Bank of India (RBI) released guidelines under the Liberalized Revenue Scheme (LRS) that permitted an Indian Resident to invest up to 250000 dollars (around 1.9 crore rupees) per year without any special permissions.

Overseas Assets –

You will not be liable to pay tax. As an NRI returning to India, you can also continue to hold your foreign earnings, foreign securities, and immovable property outside India if it was acquired when you were a resident outside India. The income from such investments can also be retained outside India.

Can I buy S&P 500 Vanguard ETF (VOO) shares? Yes, Indian investors can buy S&P 500 Vanguard ETF (VOO) in the US stock market by opening an International Trading Account with Angel One.

Yes, Indian residents can invest in NASDAQ subject to regulations set by the Reserve Bank of India (RBI). Per RBI guidelines, Indian residents can invest up to $250,000 per financial year in foreign securities.

What is equivalent of S&P 500 in India? ›

The S&P BSE 500 is designed to be a broad representation of the Indian market. Consisting of the top 500 constituents in the S&P BSE AllCap, the index covers all major industries in the Indian economy.

A majority of analysts believe one should buy shares of Tata Steel at this point due to favourable fundamental and technical factors. Shares of the company have underperformed the BSE Metal index and the equity benchmark Sensex in the last one year. The stock hit its 52-week high of ₹138.63 on BSE on April 6, 2022.

India has received excellent news from the graphic-based report 'Recession Probability Worldwide 2023'. According to the metre, India won't experience a recession. India will remain strong with a 0 per cent recession.

Healthcare. If interest rates remain high and the U.S. economy moves into a recession this year as a result (as many experts are predicting), Akullian points to the healthcare sector as a contender for strong performance in 2023.

For the rest of 2023, investors should consider some safe stock winners like Walmart (NYSE:WMT), Home Depot (NYSE:HD) and O'Reilly Automotive (NASDAQ:ORLY). Today, these stocks still have substantial competitive advantages and unique business characteristics likely to support outperformance in this cycle.

10% Return for S&P 500 a Real Possibility by End of 2023

Short of a recession — a very real possibility — consensus estimates are for about 5% earnings growth for S&P 500 companies in 2023. That's certainly less than what it was in years past, but still respectable.

Who is the famous Indian investor in USA? ›

Mohnish Pabrai is an Indian-American businessman, investor, and philanthropist. He was born in Bombay (Mumbai), India, on June 12, 1964.

With the US stock market, this is done in USD naturally. The USD is the global currency by default and is a stronger currency than the INR. Hence, any investments made with the USD in play will bear higher returns. This spells more profit for the investors who invest in US markets.

So, is it the right time to enter the markets now? “The answer is Yes and No, depending on what is our risk-taking capacity and the time frame that we're looking at for investments,” says Col. Sanjeev Govila (Retd), a SEBI Registered Investment Advisor (RIA), and CEO, Hum Fauji Initiatives, a financial planning firm.

INDMoney is a popular and verified app that allows users to invest in US stocks. It is a super finance app that allows users to save, plan, and invest in stocks for the better planning of the family. Indmoney referral code is “TNZ43RJGAMZ” to get free amazon and tesla stocks worth rs 1000.

Open a Demat Account and Start Investing

If you wish to trade and invest in stocks in the US through the NSE IFSC, you must have an online demat account. You must also open a linked trading account so you can buy and sell any of the stock listed on the exchange.

Yes, you can buy international (US) stocks on Groww. Log in to your Groww account. Below explore button, click on the US stocks button and start investing as per your choice of stocks.

At present you can buy 8 US stocks on the NSE IFSC Exchange. These are Alphabet (Google), Amazon, Meta Platforms (Facebook), Netflix, Apple, Walmart, Tesla, and Microsoft.

Rakesh Jhunjhunwala

Rakesh, the son of a salaried officer, entered the stock market after graduating as a contractual bookkeeper. After that, he was a stock trader. He amassed over Rs 15,000 crore in assets from a small investment of Rs 5,000. "Rare Enterprises" offers the resources used by Mr. Jhunjhunwala.

The largest stocks greatly impact the index's long-term performance and daily movement. Apple, Microsoft, and Amazon are the top three stocks in the index. Other companies in the S&P 500's top 10 list include NVIDIA, Alphabet, Berkshire Hathaway, Meta (formerly Facebook), UnitedHealth, and Tesla.

What are the top 3 stock markets in the US? ›

The three most widely followed indexes in the U.S. are the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite. The Wilshire 5000 includes all the stocks from the U.S. stock market.

Can Indians invest in the US stock market? Yes, Indians can invest in the US stock market. There is more than one way to buy and hold US stocks in your portfolio. Direct equities, ETFs, and mutual funds are just one of the few popular options.

You must strive to save at least 30% of your gross income or ₹60,000 every month. To calculate how much amount you should invest in SIPs, we will have to use the standard formula, which is 100 minus your age to be invested in equity through mutual funds.

Switzerland. Switzerland is one of the best countries to invest in.

At present, Zerodha does not facilitate investments in stocks listed on foreign stock exchanges. Still need help?

Resident Indian can open an overseas trading account with an Indian broker having tie-up with international brokers such as ICICI Direct, HDFC Securities, Kotak Securities, and Axis Securities etc. or directly open an account with a foreign broker having presence in India like Charles Schwab, Ameritrade, Interactive ...

Since NSE IFSC trades are conducted in US dollars and not Indian rupees, currency conversion is mandatory to make investments in NSE IFSC US stocks. You can start trading in US stocks listed on the exchange once your funds have been transferred to the account of the IFSC-registered broker.

You can invest in over 5,000 securities with Robinhood Financial, including most U.S. stocks and exchange-traded funds (ETFs) listed on U.S. exchanges. We're also excited to offer options trading and access to over 650 global stocks through American Depositary Receipts (ADRs).

Can a NRI buy stocks in Zerodha? ›

NRIs can invest in equity delivery and trade in F&O. However, to trade in F&O, a custodian must be appointed and a Custodian Participant (CP) code is required. Zerodha has partnered with Orbis to provide custodial services. To learn more about Orbis, visit orbisfinancial.in/.

Which international exchanges can I invest in? As of now, you can invest in six major global markets: US, UK, Germany, Japan, Singapore & Hong Kong.

You can now invest in international stocks and ETFs through the Angel One app, via Vested. Vested is a US Securities and Exchange Commission Registered Investment Advisor. Through this online platform, investors from India and NRIs can invest in US stocks and ETFs easily.

No, Robinhood doesn't work internationally. To use Robinhood, you must be a US citizen, a permanent resident, and have a valid US visa. You can find Robinhood alternatives for international users here.