A trillion-dollar megacap stock adding billions of dollars to its market capitalization in a single day of trading is out of the ordinary. On February 22, Nvidia’s market value increased by $277 billion, the company’s largest single-session gain ever.
Post the announcement of quarterly results, the investor sentiment turned bullish, pushing the stock price up by nearly 16% in a day. To get a perspective, in dollar terms, the market cap of Reliance Industries was around $243 billion on that day. One billion dollars is roughly Rs 8300 crore.
So, what’s leading the rally in Nvidia? It’s primarily the demand for Nvidia’s chips as tech companies need them for their AI products.
However, if you are an Indian investor looking to get a piece of the semiconductor sector and ride the Nvidia wave, you must exercise caution. The Nvidia stock has run up a lot. Nvidia Stock (NVDA) listed on the Nasdaq stock exchange is up by over 70 percent in 2024 so far and 255 percent over the last 12 months. Long-term investors may, however, consider adding Nvidia or other AI-led stocks to their portfolio.
How can Indian investors buy Nvidia shares
Indian investors seeking exposure to US markets may consider investing through mutual fund schemes offered in India. Several international mutual fund schemes enable investors to add global stocks to their portfolios.
However, there is a regulatory barrier in the way. The mutual fund sector’s overall overseas investment is limited to $7 billion, with each mutual fund house allowed a maximum of $1 billion. As the maximum is reached, many fund firms cease accepting new deposits. As a result, not all fund houses may be accepting investments in overseas mutual funds.
In addition, exchange-traded funds (ETFs) assist investors in making international investments. However, even they have a limit of $1 billion.
To buy Nvidia directly from India, you need to open an international trading account through any online platform like Vested, Appreciate, or Stockal amongst others.
According to ACE MF, Fisdom Research as of January 2024, Indian mutual funds have a total exposure of nearly Rs 1699 crore in Nvidia with another Rs 980 crore through ETFs.
Some mutual funds having exposure to Nvidia stock include Motilal Oswal, Mirae, Franklin, Axis, Kotak amongst others.
Some of the ETFs, that have exposure to Nvidia include Motilal Oswal Nasdaq 100 ETF, Mirae Asset NYSE FANG+ ETF, Kotak NASDAQ 100 FoF, Motilal Oswal S&P 500 Index Fund, Navi NASDAQ 100 FoF, Invesco EQQQ NASDAQ-100 UCITS ETF, ICICI Prudential NASDAQ 100 Index Fund, Mirae Asset S&P 500 Top 50 ETF, Aditya Birla SL NASDAQ 100 FOF, Axis NASDAQ 100 FoF amongst others.
