Nasdaq 100: A tech-heavy large-cap growth index

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Updated: January 05, 2021 3:28 PM

One stock market index that reflects the overall sentiment of the tech-heavy and digital world in the future, is the Nasdaq 100.

FAANG stocks, facebook, apple, stock, share, price, how to invest in top US stocks from India, Quotes nasdaq 100, stocks in nasdaq 100, US stock marketSome of the world’s most innovative companies like Apple, Microsoft, Starbucks, Google, Intel, and Tesla are listed on Nasdaq-100.

To a large extent, the US stock market was instrumental in leading the big rebound in global stock prices in 2020. After the outbreak of the Coronavirus pandemic, with the US Fed pumping in the economic stimulus, the optimism in the recovery process was overwhelming in the stock market indices worldwide.

The technology sector, undoubtedly, was a big gainer as lockdown restriction worked in favour of the work-from-home companies to increase their reach. And, one stock market index that reflects the overall sentiment of the tech-heavy and digital world in the future is the Nasdaq 100. No wonder, Nasdaq 100 is up by nearly 43 per cent over the last 12 months.

What is meant by Nasdaq 100

The Nasdaq 100 index since its inception in 1985 is a large-cap growth index and includes 100 of the top domestic and international non-financial companies based on market capitalization. The Index reflects companies across major industry groups, including computer hardware and software, telecommunications, retail trade and biotechnology. Noticeably, what it does not include are the stocks of banks and financial companies, including investment companies.

What does Nasdaq 100 offer

With more than 7,000 products linked to this index, the Nasdaq-100 provides investors access to some of the world’s leading companies and investment products such as ETFs, Annuities, Options and Futures.

What companies are there in Nasdaq 100

Some of the world’s most innovative companies like Apple, Microsoft, Starbucks, Google, Intel, and Tesla are listed on Nasdaq-100. What are known as the FAANG stocks — Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX) and Google (GOOGL) — representing substantial market cap, are the top 5 stocks in the Nasdaq 100 index.

New Additions to index

These six companies have been added to the Nasdaq 100 recently – American Electric Power Company, Inc. (Nasdaq: AEP), Marvell Technology Group Ltd. (Nasdaq: MRVL), Match Group, Inc. (Nasdaq: MTCH), Okta, Inc. (Nasdaq: OKTA), Peloton Interactive, Inc. (Nasdaq: PTON), Atlassian Corporation Plc (Nasdaq: TEAM).

These six companies have been removed from the Index: BioMarin Pharmaceutical Inc. (Nasdaq: BMRN), Citrix Systems, Inc. (Nasdaq: CTXS), Expedia Group, Inc. (Nasdaq: EXPE), Liberty Global plc (Nasdaq: LBTYA/LBTYK), Take-Two Interactive Software, Inc. (Nasdaq: TTWO), Ulta Beauty, Inc. (Nasdaq: ULTA).

How to invest in Nasdaq 100 from India

The good news is that unlike in the past, today it’s much simpler and easier for an Indian investor to invest in the US stock market or trade-in Nasdaq 100 stocks. For this, you just need to open a trading account with an international investing platform.

To open a US stock market account, which will include a US brokerage account, you can complete the account opening process entirely online by uploading scanned copies of ID and address proof. After the account gets opened, you can remit the funds through net banking of most large Indian banks. Investing in top US stocks from India has never been easier than this.

What about Nasdaq 100 performance

As on December 31, 2020, the Nasdaq 100 (NDX) was at a level of around 12888.28.  As far as the performance goes, with a heavy allocation towards top-performing industries such as Technology, Consumer Services, and Health Care, Nasdaq-100 (NDX) has generated nearly 46.36 per cent return over the last one year. The 52-weeks range for Nasdaq 100 has been 6771.91 – 12925.53.

Given the way technology is influencing the new world order, in the days to come, this trend is more likely to prevail. As an Indian investor, it’s better to diversify globally and add the best US stocks in 2021 to your portfolio.

Looking to invest in US Stocks? Open a free account with Stockal - India's first borderless investment platform.

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