Indian Investors Capitalize on US Market Downturn

In April, as global markets reeled from US President Donald Trump's tariff hike proposals, Indian investors demonstrated remarkable foresight. Doubling down on their investments abroad, they predominantly targeted US stocks during the market crash, a strategy known as 'buying the dip'. This move underscored their confidence in the long-term value of US equities.

Record-breaking month for US stock investments: INDMoney, a leading investment platform, reported a 400% surge in new inflows into US stocks in April compared to previous months. "This month, we added nearly as many new US stock investors as Indian stock investors—a first for us," said Nikhil Behl, co-founder & CEO of INDMoney.

Global Investing Platforms Witness Surge

Platforms facilitating global investments for Indians, like HDFC Securities and Appreciate, observed similar trends. HDFC Securities saw its trading volumes in global investing exceed March's monthly volume within the first two weeks of April. Appreciate noted a 2.5x increase in average stock purchases post-tariff announcements.

Indian investors are leveraging the RBI's liberalized remittance scheme (LRS), allowing up to $250,000 annual investment in foreign equities. The volatility presented a buying opportunity, especially in innovation-led sectors like AI, semiconductors, and large-cap tech, with giants like Apple, Google, and Meta at attractive valuations.

Diversified Investment Approaches

Investments were not concentrated; while some focused on the 'Magnificent 7' (Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla), there was significant interest in ETFs. Existing investors diversified risks with higher ETF allocations, whereas newcomers predominantly invested in Magnificent 7 stocks.