Last Updated on Jan 23, 2026 by Harshit Singh
Indian equities have delivered strong long-term returns, but relying on a single geography comes with risks. Economic slowdowns, policy changes, and sector concentration can significantly impact portfolios. US equities offer a way to spread that risk across economies, currencies, and business cycles.
Historically, Indian and US markets have not moved in perfect sync. During periods when Indian sectors struggled, such as during global tech disruptions or domestic slowdowns, US technology stocks often outperformed. This low correlation can smooth overall portfolio volatility and create a more resilient long-term investment strategy.
In this article, we have listed down the reasons why Indian investors are increasingly investing in US stocks
Table of Contents
Access to Global Innovation Leaders
The US accounts for over ~60% of the world’s total stock market value, making it home to the largest and most influential companies globally. Giants like Apple, Microsoft, Amazon, NVIDIA, and Tesla are all listed in the US, many of which have market capitalisations larger than India’s entire equity market sectors.
Smarter Portfolio Diversification
India represents less than 4% of global market capitalisation, while the US contributes more than half. Relying only on Indian equities means ignoring most of the investable global market.
Historically, the correlation between Indian and US markets has hovered around 0.64, meaning they often move independently. During COVID-19, while several Indian sectors declined, the NASDAQ rose over 40% in 2020, helping globally diversified portfolios recover faster.
Currency Gains on Top of Stock Returns
The Indian rupee has depreciated from around Rs. 70/USD in 2019 to ~Rs. 91.59/USD in 2026, a decline of nearly ~30% in seven years. Which translates into – a Rs. 70,000 investment in US stocks in 2019 could be worth Rs. 91,590 in 2026 even if the stock price didn’t move at all, purely due to currency appreciation.
Exposure to Sectors Missing in India
Over 70% of global semiconductor revenues, 90% of global cloud infrastructure, and most publicly listed AI leaders are based in the US.
India has no major listed semiconductor or AI pure-play companies, while the US offers direct access to firms like NVIDIA, AMD, Microsoft, and Alphabet, companies driving trillion-dollar global industries.
Stability of the US Economy
The US is the world’s largest economy with a GDP exceeding $30 trillion, supported by deep capital markets and global reserve currency status. Nearly 60% of global forex reserves are held in US dollars, reinforcing its long-term stability.
Protection Against Inflation
India’s average inflation has ranged between 5-7%, while US inflation historically averages 2-3%. Investing in dollar-denominated assets helps preserve purchasing power more effectively over long periods.
Improved Tax Treatment
Post-Budget 2024, long-term capital gains tax on foreign equities dropped from 20% to 12.5%, reducing tax outgo by Rs. 75,000 on every Rs. 10 lakh gain, bringing US investing closer to Indian equity taxation.
Invest in US Stocks on Tickertape
Indian investors are no longer limited by geography. With easier access, favourable taxation, global diversification, and exposure to world-class businesses, US equities have become a natural extension of smart portfolio building.
Here’s how you can start building your global portfolio with Tickertape –
- Start by opening your FREE Broker Account here
- Complete your Aadhar KYC Verification using DigiLocker
- Connect your HDFC or Axis Bank Account
- Once connected, add funds to your US Wallet*
- Once done, you can invest in US Equity
Please note it can take up to 2 business days for the money to reflect in your wallet.
Frequently Asked Questions
Are US stocks riskier than Indian stocks?
Market risks exist everywhere, but geographic diversification can reduce overall portfolio risk.
How are US stocks taxed for Indian investors?
Taxation rules have improved post-Budget 2024, aligning long-term capital gains on foreign equities closer to Indian equity taxation.
What documents are required to start investing?
Digital KYC and basic documentation under LRS guidelines are required for trading US stocks. Documents such as Pan Card, and Aadhar card are mandatory to complete KYC registration on Tickertape, which can be done digitally and manually.
As an investment fanatic, I’ve dabbled in early-stage startups, mutual funds, gold, stocks, smallcases, and real estate to identify which assets generate the highest ROI. At Tickertape, I’m dedicated to presenting my learning and providing insightful suggestions to help my readers make sound investment decision.
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