When it comes to exploring global stock markets, the United States has become a top choice for investors worldwide. Known for its well-established, liquid, and efficient financial markets, the US stock market offers an attractive diversification opportunity for global investors, including those from India. But can Indians invest in the US stocks from India is the question we will answer along with knowing the timings of the same.
Evolution of US Stock Trading for Indian Investors
Earlier, when you thought about investing in US stocks from India, it seemed to be a challenging and time-consuming process. Indian investors had to navigate through the complex task of funding their global accounts, submit several statutory forms, pay high fees, and often make physical visits to banks. The process was tedious and discouraged many from taking part.
However, over recent years, technological advancements have transformed this landscape. What was once a difficult task has now become a simple and streamlined process, thanks to various investment platforms such as Stockal. These platforms allow Indian investors to trade in US stocks easily, eliminating the complications and making participation in US stock exchanges more accessible than ever before.
Advantages of Trading in US Stocks
When you invest in US stocks from India, it comes with several benefits that make it an appealing option for Indian investors. One of the key advantages is the relative stability of the US market compared to the Indian market. Historically, US markets like the Dow Jones and S&P 500 have shown lower volatility compared to the Indian Nifty index. Over the last 15 years, the standard deviation of the Dow Jones and S&P 500 has been around 18%, whereas the Nifty has shown a standard deviation of 22%. This suggests that market fluctuations are more frequent in India, making US stock investments a potentially safer bet.
Another major advantage of investing in US stocks is the strength of the US dollar. In recent months, the Indian Rupee has depreciated by around 9% against the US Dollar. By investing in US markets, Indian investors not only benefit from potential stock market gains but also from the appreciating value of the dollar. Even if their portfolio value remains unchanged, the rising dollar increases the overall worth of their investments when converted back to INR. This added layer of profit can make a significant difference in long-term gains.
Know the US Market opening time in India
The US stock market operates during different hours compared to the Indian market due to the time zone differences. Here is the US Market opening time in India along with the closing ones as per the Indian Standard Time (IST):
Regular US Market Hours (IST):
NYSE (New York Stock Exchange) & NASDAQ:
- Opening Time: 7:00 PM IST
- Closing Time: 1:30 AM IST (next day)
These timings may change during Daylight Saving Time (DST), when clocks are moved an hour forward in the US:
US Market Hours During Daylight Saving Time (IST):
- Opening Time: 8:00 PM IST
- Closing Time: 2:30 AM IST (next day)
For Indian investors, it’s important to keep track of these timings for optimal trading opportunities when they intend to invest in US stocks from India. So, all the best for your venture!
