Indians are placing bigger-than-ever bets on US stocks this year
as the American stock market has recovered faster than markets in India and
other emerging nations
Mom-and-pop Indian
investors increasingly buying US stocks have been drawn to a company that has
no presence in India, so far: Electric car maker Tesla.
Indians are
placing bigger-than-ever bets on US stocks this year as the American stock
market has recovered faster than markets in India and other emerging nations
following a crash sparked by the coronavirus pandemic.
While firms, such
as Apple, Amazon, and Facebook — which have a significant presence in India —
are popular among Indian investors in US stocks, the data from brokerages shows
Tesla has emerged as a new favorite.
Indian brokerage
Vested Finance said its accounts held $2.5 million worth of Tesla
stock in November, up from just $76,000 at March-end. Another brokerage firm,
Stock, said its clients’ Tesla holdings have quadrupled to $10 million during
the period.
Tesla shares
surged around 450 percent during that time.
“Some investors
have just created accounts to be able to invest in Tesla,” Vested's CEO Viram
Shah said. “We would have never imagined that a company which is not even
present in India would be the most popular.”
The frenzy around
the stock comes as Tesla CEO Elon
Musk has signaled an India launch is impending. Musk in October tweeted the
firm will foray into India “next year for sure”, and had earlier tweeted about
a 2020 launch.
Tesla’s plans of a
possible launch come when India is becoming focused on promoting the use of
electric vehicles, even though Musk has flagged concerns around high Indian
import duties.
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