US stocks a tap away: How Indian trading apps are changing investment habits

Asia

Major Indian stockbroking apps began making it easier for retail investors to buy US stocks last month. Experts tell CNA the move could reshape investment habits as Indians seek global opportunities, but warn of risks and potential implications for domestic markets.

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13 Nov 2026 06:00AM

BENGALURU: For eight years, Bengaluru-based recruitment professional Jishnu Banerjee has invested in Indian stocks through online brokerage Zerodha. Now, the 40-year-old is considering adding shares in companies based in the United States such as Apple and Meta to his portfolio.

“It's good to have the option to diversify. It shouldn't matter whether the Indian market or the US market is doing better. I would want to diversify regardless,” he said.

His interest comes as some of India's biggest stockbrokers make it easier for millions of existing customers to invest in US companies.

Three major Indian stockbrokers - Groww, Zerodha and Angel One - began rolling out services allowing customers to invest in US stocks in October.

Previously, Indian investors typically had to use specialist platforms to buy US stocks, with overseas money transfers often involving extra fees and delays. 

The new services - introduced after Indian regulatory reforms in 2025 eased access to overseas markets - allow customers to invest through familiar apps, although currency-conversion costs and international transfer requirements remain.

The growing interest in US stocks comes as Indian equities lag behind Wall Street, with India's benchmark Nifty 50 index falling nearly 12 per cent in the first ten months of 2026, while the US S&P 500 gained about 11 per cent. 

Together, Groww and Zerodha accounted for nearly 44 per cent of active retail user accounts on India's National Stock Exchange in September. 

Harsh Jain, Groww’s co-founder and chief operating officer, told CNA that the launch reflected growing interest among Indian retail investors in global industries, including artificial intelligence, semiconductors, robotics and electric vehicles.

He said American technology giants were among the most popular investments 

Industry experts told CNA easier access could shift Indian savings overseas, potentially diverting money from domestic markets while exposing inexperienced investors to new risks.

WHY INDIANS ARE LOOKING OVERSEAS

The growing attraction of US stocks reflects a shift in how Indian investors view opportunities beyond their home market.

Until around 2024, when Indian equities were outperforming many overseas markets, investors largely sought international exposure to diversify their portfolios rather than earn higher returns, said Vishal Dhawan, founder of Mumbai-based wealth advisory firm Plan Ahead.

“If you want high returns, you come to India. If you want diversification, you go overseas,” he said, describing the prevailing mindset at the time.

But India's relative market underperformance since then, a weakening rupee and the boom in US-based artificial intelligence companies have changed that calculation, he said.

Dhawan said his firm had long advised many clients to keep around 20 per cent of their investments in overseas markets, spreading their money beyond Indian stocks. Previously, some questioned whether that allocation was dragging down their overall returns because Indian equities were performing better.

Now, with overseas markets delivering stronger returns, some are asking whether 20 per cent is enough, he said.

India's relatively limited exposure to AI-linked companies has also weighed on its stock market this year, Reuters reported on Nov 4, highlighting a gap that investors seeking to participate in the global AI boom may look overseas to fill.

More than half of investors who bought US securities through Groww have purchased at least one AI, big-tech or semiconductor stock, according to data shared by the company.

“Some of the most popular US stocks include Nvidia, SpaceX, Apple, Alphabet, Amazon, Meta, Microsoft, Micron, Tesla and Netflix,” said Jain of Groww.

He added that funds tracking major US stock indices, including the S&P 500 and Nasdaq-100, were also among the most popular investments.

The appeal is also extending beyond affluent investors, according to Ashish Kashyap, founder of investment platform INDmoney.

The company said the median first international investment on its platform was US$150, while systematic investment plans (SIPs) - which enable regular investments in smaller amounts in global stocks - nearly doubled between September 2025 and September 2026.

“An investor may initially come to INDmoney to buy Nvidia, Google or Apple, but increasingly recognises the importance of building a diversified international portfolio rather than concentrating investments in a handful of companies, sectors or geographies,” Kashyap said.

COULD INDIAN MARKETS LOSE OUT?

The growing interest in overseas stocks comes at a time when foreign investors have been pulling money out of India's equity markets.

Foreign institutional investors pulled out a net 2.95 trillion Indian rupees (about US$31 billion) from the country’s stock markets in the first ten months of 2026, according to a Press Trust of India report.

Meanwhile, Indian residents invested US$2.61 billion in overseas stocks and debt instruments between January and August, up 86 per cent from a year earlier, according to data from India’s central bank.

The increase points to growing interest in foreign investments among Indians, even before major domestic brokerages launched their latest US stock investing services in October.

Specialist platforms Vested and INDmoney have offered US stocks since 2019 and 2020 respectively, but the latest rollouts make overseas investing accessible through familiar brokerage apps.

Groww itself offered US stocks in 2020 but halted new purchases in February 2024, citing transfer difficulties, high withdrawal fees and settlement delays.

Investment platforms Groww and INDmoney said overseas investing is unlikely to replace domestic investments, with Kashyap suggesting it is “increasingly attracting incremental household savings” rather than diverting money from Indian equities.

Customers typically start with less than 3 per cent of their portfolios invested overseas, raising that share to 7 to 10 per cent within eight to 12 months, according to INDmoney.

However, wealth adviser Dhawan expects India's historically strong preference for domestic investments to gradually diminish as more investors diversify internationally.

He said familiar brokerage platforms such as Groww and Zerodha could accelerate that shift by making investors more comfortable buying overseas shares.

Nevertheless, appetite for domestic investments remains strong. 

For instance, telecom and digital services company Jio Platforms made its stock market debut on Oct 28 after raising about US$3.2 billion in India's largest-ever initial public offering (IPO). Its retail portion was oversubscribed 2.72 times, according to exchange data.

Growing overseas capital flows have also drawn regulatory scrutiny, with Bloomberg reporting on Oct 20 that India's central bank had stepped up checks on large overseas investments amid concerns over a weakening rupee. However, this is currently directed at companies, rather than individual retail investors. 

THE RISKS OF CHASING WALL STREET

Experts who spoke to CNA warned that easier access to the US stock market could expose inexperienced Indian investors to unfamiliar risks, particularly if they are drawn to technology companies after their strong market performance.

The risks were highlighted by a sharp sell-off in US technology stocks on Nov 5, which wiped about US$2.5 trillion off the Nasdaq-100's market value amid fears of tighter AI regulation and concerns over lofty valuations. 

Nvidia shares had fallen nearly 29 per cent from their record high on Oct 6 by Nov 11, highlighting the risks for investors hoping to profit from the technology boom.

Dhawan said investors might fall for “recency bias”, where they chase stocks that have recently delivered strong returns without considering whether those gains can continue.

He said the social appeal of owning shares in famous companies such as Google or Amazon could also influence younger investors, even when they have limited understanding of the businesses.

But Banerjee does not expect investing in familiar American companies to require much additional guidance.

He said he would approach buying US shares much like investing in Indian stocks and did not expect brokerage platforms to provide extensive education for straightforward investments.

Beyond market volatility, overseas investing brings complications that Indian investors may not encounter when buying domestic shares, Dhawan said.

For example, US estate taxes could apply to American shares owned by an Indian investor if they die, potentially reducing what their family inherits. 

Dividends paid to shareholders may also be taxed in the US before investors receive them.

Indian investors must also declare certain overseas holdings in their tax returns and account for currency-conversion fees and international money-transfer charges, Dhawan said.

These additional costs could eat into investment returns, particularly for those investing small amounts or trading frequently.

Dhawan warned that the convenience of buying US shares should not obscure the additional responsibilities that come with investing in another country.

“Investors who fail to understand those obligations could end up creating problems for themselves that they don't even understand,” he said.

Source: CNA/ss(cf)