46 Million Indians Gain Direct Access to U.S. Stocks as Local Market Slumps

Millions of Indian retail investors can now buy American stocks directly through local trading apps, ending a practice that previously favored the wealthy.

Groww, which serves more than 29% of the country's 46 million active brokerage clients, launched its U.S. equity trading feature earlier this month. The platform provides access to over 10,000 U.S. stocks and exchange-traded funds, including fractional shares. Harsh Jain, the company's chief operating officer and co-founder, identified Nvidia, SpaceX, Apple, Alphabet, Amazon, Micron, and Meta as the most popular choices among early users. Zerodha, the second-largest platform with a 15% market share based on NSE data, is currently beta testing its U.S. stock access feature and expects a full launch within a few weeks. Angel One, which has 6.7 million active retail clients, is also preparing to offer similar services.

The shift comes as domestic assets struggle to attract capital. The Nifty 50 has fallen nearly 13% since the start of the year, while the S&P 500 has risen more than 12%. Foreign investors have withdrawn a record $32.5 billion from direct Indian equities since January, according to NSDL data. Analysts attribute this trend to expensive Indian valuations and the lack of a major local artificial intelligence company. Somnath Mukherjee, vice president of corporate development at Zerodha, noted that the rupee's decline against the dollar is also driving investors to hold part of their portfolios in another currency.

Market experts describe the current enthusiasm for U.S. equities as similar to the recent crypto boom. Nitin Jain, chief executive and director at Kotak Mahindra Asset Management Singapore, stated that retail investors generally follow rising assets. He observed that there is big interest in American technology companies specifically. Meanwhile, money leaving the country for investment purposes is accelerating. In August, residents sent more than $321 million abroad for equity and debt investments, a 111% increase from the previous year. For the financial year ending in March 2026, these outward remittances totaled $2.6 billion.

Tanvi Kanchan of Anand Rathi Shares & Stock Brokers pointed out that investment now accounts for about 11.7% of total outward remittants, up from 5.8% a year ago. She warned that while these outflows are small relative to India's currency reserves, they could amplify pressure on the rupee at a weak moment. Nitin Jain also suggested that the Indian regulator might reconsider its stance on retail access to U.S. markets as participation grows.