As per the recent data of the Indian stock market, Major market indices in India are at their highest level. Sensex and Nifty both are at their peak levels of 56,124.72 and 16,705.20 as of 27th August 2021 respectively. Despite this high level of indices, investors from the Indian market, explore foreign markets to get an advantage of foreign exchange variations and well establish high return stocks. Among various stock markets, the US stock market is a profound place to infuse funds.
As the Indian stock market occupies a place in the world’s better stock markets, but the attractiveness of the US stock market induces an investment and trade in US stocks from India.
Introduction to the US stock market and opportunity for Indian Investors:
The US stock market has major two stock exchanges that include NASDAQ and NYSE (New York Stock Exchange) that comprise three indices such Dow Jones, Nasdaq Composite, and S&P 500. The values of the three indices trended at a high level. The reason behind attraction for US stocks is superior returns in the US market. As per data, Dow Jones returned 196%in the last 10 years and BSE Sensex returned 150% in the last 10 years.
The US market has ample opportunity for Indian investors to invest in US securities. Indian investors diversify their portfolios by adding some beneficial stocks. Investors can steep their funds for long-term investment as well as for intraday trading in the US stock market.
Types of available US stocks to trade from India:
To diversify your investment portfolio, the US stock market offers multiple stocks for Indian investors. Four considerable caps based on market capitalization are Mega Cap, Mini-cap, Large-cap, and Mid-cap. Under these market caps, you can trade on an intraday basis in US stocks from India as per your convenience and cost of stock.
Key points to buy US stocks from an Indian market:
To initiate buying of stocks in the US market from India, you, as an investor, would require to consider several points in mind. If you want to initiate investment and trading, then you would know certain aspects and rules of the Indian Government. As per the rules under the Liberalised Remittance Scheme, every investor including minors can remit $ 250,000 in the US stock market.
To buy stocks in the US market from India, you would require to go after multiple steps, that, are as follows:
- Firstly, you are required to reach an international Broker that will act as an intermediary between you and the securities.
- To enter into an international market, a more rigid documentation process would be followed to open a trading account.
- Just like Indian brokers, international brokers for the US stock market, offer various options to explore and trade.
- You are required to add US dollars to your wallet, which you can get from an authorized person in exchange for rupees.
Fulfillment of above requirements, explore a way to infuse your funds in stocks. Apart from long-term investment, an intraday trading facility in US stocks also attracts investors to earn returns in a short period.
Intraday trading facility in US market from India:
Intraday trading in the US stock is available for domestic as well as other countries’ investors. Indian investors can execute intraday trading for several types of stocks through buying and selling of stocks on a single transaction day. All you need to have is an international brokerage account, proper KYC documentation, and remitted funds under LRS of Reserve Bank of India.
Intraday trading in the US market by Indian investors would result in more returns in contrast to domestic intraday trading in the Indian market as it involves foreign exchange variations.
Conclusion:
Investment and trading in the US stock exchange induce Indian investors to go beyond a limit of a domestic market. Apart from attractiveness, the market trading process is quite interesting but tricky. You need to analyze the trading norms before entering the US stock market so that you can attain your investment and financial goals, especially from international diversification.
