In this article, we discuss 10 best Indian stocks to buy in the USA. If you want to read about some more Indian stocks, go directly to 5 Best Indian Stocks to Buy in USA.
Indian companies have taken the stock market in the United States by storm in the past few years, eclipsing even some Chinese stocks as some of the most valuable and growth-oriented businesses in the world. According to a report by investment bank Goldman Sachs, this potential is evident from projections that show that the Indian stock market could reach $5 trillion in valuation within the next three years, becoming the fifth-largest stock market in the world as investors continue to pour money into the Asian country.
Technology giants like Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG) have been investing heavily in India as well, making the country an important part of their future growth strategies. This has inextricably linked the global tech future to the growth in India. Last September, Goldman Sachs revealed that initial public offerings (IPOs) by Indian startups in the US had raised over $10 billion, a figure set to rise dramatically in the coming years.
Indian Stock Market, GDP Set for Explosive Growth in Next Five Years
Analysts at Goldman Sachs predicted that there are at least 150 private firms that could potentially list on the stock market over the next 36 months. These listings would add nearly $400 billion in market capitalization to the stock market, per these analysts. This would contribute to lifting the stock market of the country above markets in the United Kingdom and the Middle East. India is home to more than 800 million internet users and has over 500 million smartphone users, second only to China worldwide.
Timothy Moe, the co-head of Asia macro research at Goldman Sachs, told CNBC last year that there were at least 67 private start-ups in India that could be called unicorns, a term used to refer to firms that are valued at over $1 billion. Most of these are focused on the digital economy and hit the $1 billion mark in 2021. The share of Indian firms in global stock markets is also rising, per the analyst, and is expected to climb from 2.8% in 2021 to 3.7% within the next five years, keeping pace with the growth in the Indian GDP. He further noted:
“What we’re really flagging here is that as exciting as China was over the last decade, when you had this new China story — which is very, very profitable and successful for investors – we could see some sort of an analog of that beginning to take place in India.”
Our Methodology
The companies that have deep links with the Indian economy were selected for the list. The analyst ratings of these firms and the latest updates related to them are also discussed to provide some additional context. Data from around 900 elite hedge funds tracked by Insider Monkey in the second quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.
Photo by Sylwia Bartyzel on Unsplash
Best Indian Stocks to Buy in USA
10. Sify Technologies Limited (NASDAQ:SIFY)
Number of Hedge Fund Holders: 4
Sify Technologies Limited (NASDAQ:SIFY) provides integrated ICT solutions and services in India and internationally. It is one of the best Indian stocks to invest in. Sify Technologies Limited (NASDAQ:SIFY) on September 13 announced a strategic partnership with Aquila Clouds. This has added FinOps capabilities to Cloudinfinit, the industry-leading cloud management platform of Sify Technologies Limited (NASDAQ:SIFY). FinOps platform provides cloud asset management, performance and cost trend analysis, cloud cost optimization and automation, budget control, chargeback, security, and compliance management. Besides FinOps, Aquila Clouds also powers Sify Technologies Limited (NASDAQ:SIFY)’s billing operations with its BillOps platform.
On July 22, Sify Technologies Limited (NASDAQ:SIFY) reported profit after tax of INR 271 million versus INR 329 million last year. Raju Vegesna, the chairman of the firm, said that India has retained a strong outlook for investments and growth as compared to other countries and this was due to the consistent economic policies of the government, which would greatly benefit the technology landscape.
At the end of the second quarter of 2022, 4 hedge funds in the database of Insider Monkey held stakes worth $149,000 in Sify Technologies Limited (NASDAQ:SIFY), compared to 5 in the preceding quarter worth $421,000.
Just like Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG), Sify Technologies Limited (NASDAQ:SIFY) is one of the best Indian stocks to buy in the USA.
9. Azure Power Global Limited (NYSE:AZRE)
Number of Hedge Fund Holders: 5
Azure Power Global Limited (NYSE:AZRE) engages in the development, construction, ownership, operation, maintenance, and management of renewable energy projects in India. It is one of the top Indian stocks to invest in. Azure Power Global Limited (NYSE:AZRE) on September 09 revealed that it had signed an agreement with energy firm First Solar. The agreement is to supply 600 megawatts of high-performance, advanced thin film photovoltaic solar modules of First Solar to Azure Power Global Limited (NYSE:AZRE). First Solar will first start production from its factory in Tamil Nadu, India, which is expected to be commissioned in 2023.
On September 21, Azure Power Global Limited (NYSE:AZRE) announced that Shweta Srivastava would be the new chief human resource officer of the firm. As the officer, Srivastava would be responsible for leading human resource strategy in support of the overall business plans in the areas of succession planning, talent management, change management, organizational and performance management, training and development, and compensation.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Renaissance Technologies is a leading shareholder Azure Power Global Limited (NYSE:AZRE), with 211,096 shares worth more than $2.4 million.
8. Tata Motors Limited (NYSE:TTM)
Number of Hedge Fund Holders: 8
Tata Motors Limited (NYSE:TTM) designs, develops, manufactures, and sells various automotive vehicles. It is one of the major Indian stocks to invest in. In early October, Tata Motors Limited (NYSE:TTM) reported sales growth of 40% year-on-year for September 2022 and also 36% year-on-year for August 2022. The Indian automobile maker said it sold 82,754 vehicles in the domestic and international market during the month of September, compared to 59,156 units sold in September 2021. It also revealed that it sold 78,843 vehicles in the domestic and international market during the month of August, compared to 57,995 units sold in August 2021.
On October 06, Goldman Sachs analyst Chandramouli Muthiah initiated coverage of Tata Motors Limited (NYSE:TTM) stock with a Neutral rating and INR 450 price target, saying that the company offers a good turnaround story with underlying margins and cash flow improving.
At the end of the second quarter of 2022, 8 hedge funds in the database of Insider Monkey held stakes worth $45 million in Tata Motors Limited (NYSE:TTM), compared to 10 the preceding quarter worth $88 million.
7. Yatra Online, Inc. (NASDAQ:YTRA)
Number of Hedge Fund Holders: 9
Yatra Online, Inc. (NASDAQ:YTRA) operates as an online travel company in India and internationally. It is one of the premier Indian stocks to invest in. Yatra Online, Inc. (NASDAQ:YTRA) on September 8 appointed Rohan Mittal to the position of chief financial officer. Mittal has more than 20 years of financial, accounting, and merger and acquisition experience. Most recently, he served as CFO for a logistics company named Rivigo.
On September 22, HC Wainwright analyst Scott Buck reiterated a Buy rating on the Yatra Online, Inc. (NASDAQ:YTRA) stock with a price target of $4, stressing that the pandemic has likely accelerated the move from offline to online travel booking, bringing in market share gains.
At the end of the second quarter of 2022, 9 hedge funds in the database of Insider Monkey held stakes worth $42 million in Yatra Online, Inc. (NASDAQ:YTRA), compared to 7 in the preceding quarter worth $35.8 million.
6. MakeMyTrip Limited (NASDAQ:MMYT)
Number of Hedge Fund Holders: 10
MakeMyTrip Limited (NASDAQ:MMYT) is an online company that sells travel products and solutions in several countries. It is one of the elite Indian stocks to invest in. MakeMyTrip Limited (NASDAQ:MMYT) reported on July 27 that it had shown impressive revenue growth and a strong cash position in the most recent quarter. However, the earnings growth remained negative. Since the recent revenue growth was impressive, investors have been encouraged and will likely see a further rebound in growth across the Air Ticketing segment.
On September 14, JPMorgan analyst Ankar Rudra initiated coverage of MakeMyTrip Limited (NASDAQ:MMYT) stock with an Overweight rating and a $44 price target, stating that the stock is trading at a discount to its Indian internet peers and global online travel aggregator peers.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm Marshall Wace LLP is a leading shareholder in MakeMyTrip Limited (NASDAQ:MMYT), with 1.7 million shares worth more than $44 million.
Along with Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG), MakeMyTrip Limited (NASDAQ:MMYT) is one of the best Indian stocks to buy in the USA.
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Disclosure. None. 10 Best Indian Stocks to Buy in USA is originally published on Insider Monkey.