How to Invest in Stocks in India?

By Jason Gordon

Overview

Globalization has made the world smaller. Modern communications, including the Internet, allows anyone to take advantage of booming markets, no matter where they are located geographically. One of the largest developing economies, India's growth has averaged 7.5 percent in the last several years--red hot. Financial counselors term buying stocks outside of your home country as "diversification." This article can help you diversify by investing in stocks in India.

How to Invest in Stocks in India?

Step 1

Create or log in to your online brokerage account. Larger firms like Fidelity and Charles Schwab are more likely to have options for buying international stocks and funds.
Step 2

Research the Indian companies you are interested in. One example of a large Indian company is Infosys Technologies, a global IT company. To buy shares in this company, contact your broker or log in to your online brokerage page and click trade.

Step 3

Input the ticker symbol INFY and the number of shares you wish to purchase. INFY trades on the NYSE, so it is relatively easy for U.S. investors to buy stock. For Indian companies that don't list on U.S. exchanges, you may need to call the brokerage international trade desk to purchase an international security.
Step 4

Click submit with a market order for the easiest kind of trade. For companies listed on Indian exchanges, the stock may only be available to purchase when the BSE (Bombay Stock Exchange) or the NSE (National Stock Exchange of India) are open.
Step 5

Receive confirmation from your brokerage once the trade is executed.

Skill: Moderate
Ingredients:
Brokerage account
Tip: You can also invest in India by purchasing shares of an ETF, which are designed to track the whole Indian economy. Try the Powershares India Portfolio (symbol PIN) or WisdomTree's India Earnings (symbol EPI).

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