Indian investors eye US mkts amid earning season
Investors rush to buy the large-cap and mega-cap stocks globally to diversify their portfolio to minimize overall risk; Further, US dollar appreciating against all major currencies in the world
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West Is Calling
- More US cos continue to attract consumers despite slowdown
- Strong biz, financials and steady cash flows make large-cap stocks attractive
- Better-than-expected quarterly results positive for investors
- BoA and BNY Mellon results enhanced mkt sentiment
Mumbai: Indian investors' investments started rising from Muhurat trading and it's an exciting time for both Indian as well as US markets due to ongoing encouraging results and earnings season. Talking to Bizz Buzz, Viram Shah, Co-Founder and CEO, Vested Finance, dwelt on US market behaviour during the earning session and opportunities for Indian investors during the Muhurat trading.
"It's a good time for Indians to invest in Nasdaq as two factors will work in favour of the US stocks. First, consumption in the USA has not slowed down. So, the more prominent companies will continue to attract consumers despite a general slowdown across industries. This will benefit the large-cap and mega-cap companies in generating steady cash flows. Secondly, with the rising uncertainty due to inflation and war in certain developed countries, investors will rush to buy the large-cap and mega-cap operating globally to diversify their portfolio and minimize the overall risk. This is evident as the US dollar is appreciating against all the major currencies in the world," says Shah.
In this backdrop, some investors may find an opportunity in the US stocks, especially mega-cap and large-cap stocks given their strong business, financials and steady cash flows. These companies have sufficient capital to withstand market fluctuations and may be in a better position to weather out the storm, he remarked.
"On the one hand, banks such as JP Morgan and Wells Fargo revealed higher-than-expected credit loss provisions. The better-than-expected quarterly results from Bank of America and BNY Mellon, on the other hand, were a positive for investors," he said. Though the USA's recent consumer inflation data demonstrated that the Fed still has a lot of work to do to keep inflation under control, investors are keeping a tight eye on it. The performance of companies such as Netflix, United Airlines, AT&T, and others will help evaluate demand from a consumption standpoint.
"There is no concept of Muhurat Trading in the US market; however, keeping Indian investors in mind, we at Vested have launched the Global International Investing Festival to encourage investors to participate in global investing. In exchange, they can win up to 49 gram of digital gold with $15 of assured bonus if they initiate a transfer on the Vested platform", said Shah.
it's a good time for Indians to invest in Nasdaq stocks. Two factors will work in favour of the US stocks. First, consumption in the US has not slowed down. This will benefit the large-cap and mega-cap companies in generating steady cash flows. Secondly, with the rising uncertainty due to inflation and war in certain developed countries, investors will rush to buy the large-cap and mega-cap operating globally to diversify their portfolio
- Viram Shah, Co-Founder and CEO, Vested Finance
