Indian Brokerages Expand Access to US Equity Markets
Zerodha and other Indian financial platforms are launching US stock market access as local investors seek to hedge against domestic market volatility.
Major Indian discount brokerages, including Zerodha, Groww, and Upstox, have launched services allowing users to trade US-listed equities and ETFs. The expansion follows regulatory approval from the International Financial Services Centres Authority (IFSCA) to offer international investment options via GIFT City, providing Indian retail investors with a mechanism to diversify their portfolios beyond domestic borders.
The push comes as India’s Nifty 50 index faces its first significant annual decline in a decade, prompting capital outflows and a search for global tech exposure. By offering access to 2,000 US companies and various ETFs, these platforms aim to capture interest in global megatrends such as artificial intelligence and cloud computing, which are currently underrepresented in Indian equity listings.
Beyond meeting user demand, the shift is strategic for the brokerages themselves. Faced with a 22% year-over-year decline in new account openings and tightening regulatory oversight on derivatives trading, firms are under pressure to pivot their revenue models. Introducing cross-border trading services serves as a key strategy to retain existing users while diversifying revenue streams away from traditional domestic trading commissions.