Why Are Indians Increasing Their Investments in US Stocks Despite Market Volatility?
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Synopsis
In a surprising twist, Indian investors are ramping up their investments in US stocks despite ongoing market chaos. This report explores how they are navigating volatility and which sectors are attracting the most attention.
Key Takeaways
- Indian investors have increased their investments in US stocks despite market volatility.
- Tech stocks, especially Nvidia, are leading the trading activity.
- Net buying exceeded selling by 18.2% during Q2.
- Healthcare stocks also saw significant investor additions.
- ETFs have become a favored option for diversification.
New Delhi, July 11 (NationPress) In the face of market fluctuations and turmoil in the US stock market during the second quarter (April-June) of this year, Indian investors have significantly increased their stakes in shares of prominent US companies, according to a report released on Friday.
The April-June quarter proved to be extraordinary for the US stock market, highlighted by a 13 percent drop in the S&P 500 in April following President Donald Trump's 'Liberation Day' tariff shock.
The volatility reached crisis levels before easing in mid-May when Washington softened its tariff approach. The S&P saw an 11.7 percent recovery, the Nasdaq achieved record highs, and market volatility decreased after a reciprocal tariff was paused for 90 days, as reported by the online investment platform Vested.
Nevertheless, the disruption, uncertainty, and geopolitical tensions did not deter Indian investors from increasing their investments in US-listed firms.
"Indian investors on Vested not only maintained their positions but also took a bolder approach. On Vested, buy volumes surged 20.47 percent quarter-over-quarter (QoQ), assets under management (AUM) grew 35.4 percent QoQ and 140 percent year-over-year (YoY), while the average portfolio size expanded by 12.6 percent," stated the platform enabling Indian investments in US stocks.
"Notably, net purchases exceeded sales by 18.2 percent, despite ongoing headline risks," the report disclosed.
Tech giants drew the most interest, with chip manufacturer Nvidia leading the trading activity on the platform during this timeframe.
"Nvidia emerged as the most traded stock overall, leading both buy and sell rankings. It accounted for 6.4 percent of total buy volumes and 8.3 percent of total sell volumes, reflecting both profit-taking and buy-the-dip strategies," the firm indicated.
Other major players like Tesla, Alphabet, AMD, and Apple followed closely in trading volume; however, Alphabet, the parent company of Google, showcased the highest net inflows, alongside a 113 percent QoQ increase in unique investors.
Apart from tech stocks, healthcare leaders such as UnitedHealth Group (UNH) and Novo Nordisk (NVO) experienced over 500 percent growth in new investors, according to the report.
The report also highlighted that ETFs were the preferred method for diversification in Q2, with index ETFs like QQQM, QQQ, and VOO leading the charge. The semiconductor industry ETF SOXX also noted a significant uptick in interest.
Point of View
I find it compelling to observe how Indian investors are responding to the turbulence in the US market. Their decision to deepen their investments during such uncertain times reflects a robust faith in the long-term potential of these stocks. It highlights the resilience and forward-thinking approach of investors in our nation.
NationPress
14/07/2025
Frequently Asked Questions
Why are Indian investors increasing investments in US stocks?
Indian investors are increasing their investments in US stocks due to a belief in the long-term potential of these companies, despite short-term market volatility.
What sectors are attracting the most investment?
The technology sector, particularly companies like Nvidia and Alphabet, has attracted the most investment from Indian investors.
How did the US stock market perform in Q2?
The US stock market experienced significant volatility, with the S&P 500 dropping 13% in April before rebounding 11.7% in May.
What investment platform did Indian investors use?
Indian investors utilized the online investment platform Vested to increase their investments in US stocks.
Are ETFs popular among Indian investors?
Yes, ETFs were the preferred choice for diversification among Indian investors in Q2, with several index ETFs leading the way.
