Indian Platforms Groww, Zerodha Open US Stock Access
Indian retail investors can now access US equities through Groww, with Zerodha soon to follow, driven by domestic market underperformance and a weaker rupee.
Platforms Expand Global Investment Options
Indian investment platforms are increasing access for retail clients to trade US stocks, responding to demand for global diversification. Groww, which serves over 29% of India's 46 million active investors, launched US equity trading in October 2026.
The platform offers more than 10,000 US stocks and exchange-traded funds (ETFs), alongside fractional share ownership, according to co-founder Harsh Jain. Rival Zerodha, holding a 15% share of active clients, has begun beta testing its US stock service and expects a full launch within weeks. Angel One, with 6.7 million retail clients, reportedly also plans to introduce US stock trading.
Domestic Market Weakness Fuels Overseas Interest
This push for overseas investment follows a period of underperformance in Indian markets. The benchmark Nifty 50 index has declined nearly 13% since January 2026, contrasting with a gain of over 12% for the S&P 500 during the same period.
Furthermore, the Indian rupee's depreciation against the US dollar and a scarcity of major domestic artificial intelligence companies contribute to the interest in foreign assets, noted Zerodha's Vice President of Corporate Development, Somnath Mukherjee.
Data from Indian depository NSDL shows foreign investors have withdrawn a record $32.5 billion from direct equities since January 2026.
Rising Outflows and Regulatory Scrutiny
Indian resident investors sent over $321 million overseas for equity and debt investments in August 2026, marking a 111% increase from August 2025. This investment now constitutes 11.7% of total outward remittances, up from 5.8% a year prior. However, this trend raises concerns about potential pressure on the rupee, especially when it is already weak and US markets are strong.
Tanvi Kanchan, Associate Director at Anand Rathi Shares & Stock Brokers, suggested increased outflows could “amplify pressure at the worst moment.” Nitin Jain, CEO of Kotak Mahindra Asset Management Singapore, cautioned that Indian regulators might reconsider allowing such broad retail access if overseas investments continue to climb.
The expanded access to US equities allows Indian retail investors greater portfolio diversification and exposure to a different currency, a key driver amid rupee weakness. This shift could lead to a sustained increase in capital outflows from India, particularly if domestic market performance remains subdued.
For regulators, the challenge lies in balancing investor demand for global assets with potential impacts on the country's foreign exchange reserves and currency stability.
Future policy decisions regarding overseas investment limits or mechanisms will likely hinge on the scale of these outflows and their broader economic effects, with any changes directly influencing the growth trajectory of these new platform offerings.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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