Indian Trading App Opens Access to US Stocks as Retail Capital Flows Toward Nvidia and SpaceX

Indian online investment platform Groww officially opened trading in United States stocks to millions of retail investors earlier this month, followed by Zerodha, which is testing a similar feature. The move marks a major shift in access to global markets that was previously enjoyed only by the wealthy through international banks and wealth management firms.

Harsh Jain, chief operating officer and co-founder of Groww, said the company now offers more than 10,000 US stocks, exchange-traded funds (ETFs), and fractional share ownership. Nvidia, SpaceX, Apple, Alphabet, Amazon, Micron, and Meta are the most sought-after issuers among early users. Groww itself controls more than 29% of the 46 million active clients in India's brokerage channel.

Zerodha, the largest competitor with a 15% share of active clients based on NSE data, is running a beta test and plans to launch within weeks. Angel One, which has 6.7 million active retail clients, is reportedly preparing a similar move. The expansion comes as the benchmark Nifty 50 index has fallen nearly 13% since the start of the year, while the S&P 500 has gained more than 12%.

Pressure from domestic market performance is the main trigger. Somnath Mukherjee, vice president of corporate development at Zerodha, said demand for global stocks had in fact been pent up for a long time. According to him, the absence of world-class artificial intelligence (AI) companies in India and expensive domestic valuations have pushed investors toward markets such as South Korea and Taiwan. The depreciation of the rupee against the dollar has also encouraged investors to hold part of their portfolios in other currencies.

"Retail investors like whatever goes up," said Nitin Jain, chief executive and director of Kotak Mahindra Asset Management Singapore, describing the strong interest in US technology stocks, similar to the cryptocurrency euphoria of a few years ago.

Although the value of retail investment abroad is relatively small compared with India's foreign exchange reserves, its timing is a concern. Tanvi Kanchan, associate director and head of international business and strategy at Anand Rathi Shares & Stock Brokers, warned that outflows are rising precisely when the rupee is weakening and the US market is strengthening, potentially "amplify pressure at the worst moment".

Kotak's Jain also warned that Indian regulators may reconsider the policy on retail access to the US market if participation continues to grow. Previously, the Reserve Bank of India (RBI) stepped in to support the rupee amid foreign capital outflows and rising energy bills due to the Iran war.

Indonesian Context

A similar phenomenon could emerge in Indonesia. Local investment platforms such as Bibit, Ajaib, and Stockbit have expanded access to global instruments, while Indonesian retail investors face similar pressures: stagnant IHSG performance, a weakening rupiah, and limited exposure to AI technology giants. If this trend continues, authorities such as OJK and BI need to anticipate a surge in retail portfolio capital outflows that could increase pressure on the exchange rate, especially when global conditions are unfavorable.

Going forward, the question is no longer whether emerging market retail investors will chase US stocks, but how far regulators will let that door stay open. For India, and perhaps Indonesia, the balance between global investment literacy and macroeconomic stability will be a test in itself.