Frontline technology stocks are popular with Indian investors. The majority of the top stocks on the Nasdaq 100 are global market giants that are not traded on Indian stock exchanges. Facebook (Meta is the parent company), Apple, Amazon, Netflix and Google (Alphabet is the parent company) collectively called FAANG stocks are hugely popular US-listed stocks for Indian investors. While Indians use their goods and services, they are unable to participate in their equity by purchasing shares on domestic bourses.
According to Vested, a fintech platform for buying global equities, FAANG companies are still in the top 15 most active traded stocks in India. Despite the decline in the market value of tech stocks, investors purchased the top tech stocks via the Vested Platform.
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The Vested platform shared the data showing the kind of stocks Indian investors buy on their platform.
By transaction count – Amazon, Apple, Tesla, Microsoft and Google – are the top 5 stocks.
By transaction value – Tesla, Amazon, Apple, Google, and Microsoft – are the top 5 stocks.
The Nasdaq 100 has re-entered the bull market after rising 20% from its October lows. The greater surge in tech stocks occurred when the banking crisis erupted, as cash-rich technology businesses received preference from global investors. However, the advance in tech equities has been limited since company earnings reports for the first quarter began to arrive.
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YTD returns of some top tech stocks:
Meta: 93%
Apple: 34%
Amazon: 29%
Alphabet: 22%
Netflix: 11%
Spotify: 61%
Even though the results of most top corporations are encouraging, the interest in tech stocks appears to have subsided. “Despite decent earning reports by some of the technology companies, net buying (buy-sell) volume has remained constant. The average weekly buying volume per user has remained constant. Of course, some of the stocks have witnessed an increase in buying post the results. But on a week-over-week or month-over-month basis, the trend remained constant,” informs Vested.
Investors, probably, wait for the next course of action from the US Fed amidst the rising fear of a US recession. “In 2023, investors in technology stocks should pay close attention to market trends and the overall performance of the technology sector. Investors should approach loss-making tech companies with caution. Additionally, investors can consider diversifying their portfolios by investing in different upcoming technology stocks, such as those related to artificial intelligence, cloud computing, and cybersecurity – which is what Vested feels investors could consider while investing in US stocks.