Introduction
India’s developing economy, with the potential for high investment returns, appeals to many non-resident Indians (NRIs). If, as an NRI, you are exploring the best investment avenues in India, please know that stocks may be the right choice.
Stock market investments require careful evaluation of various factors, such as individual company performance, economic outlook, and market conditions. NRIs must maintain a diversified portfolio with investments in different sectors. You must pick companies with growth potential, resilience to economic fluctuations, and strong fundamentals.
How can NRIs invest in the Indian stock market?
The Foreign Exchange Management Act (FEMA) has formulated various rules for NRIs to invest in India. You must first apply for the Portfolio Investment Scheme (PIS) regulated by the Reserve Bank of India (RBI). Then, you can use your Non-Resident Ordinary (NRO) account or open a Non-Resident External (NRE) account under PIS.
Open Demat Account and Start Trading!
​​​​​​​You can trade in securities listed on registered stock exchanges like the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
Five best stocks for NRI investments in 2024
1. Infosys (INFY)
Infosys is one of the leading IT services companies in India. It was founded in Pune by seven engineers. Today, it has a global presence, with its headquarters in Bangalore. Its services include business consulting, engineering, information technology, and outsourcing. Its strong business model and consistent performance over the years make it a good choice for NRI investment.
As of 18 May 2024, Infosys shares were trading at Rs. 1,443.65 on NSE and Rs. 1,444.90 on BSE. Its market capitalisation was worth Rs. 5,99,334 crore.
2. Hindustan Lever (HINDUNILVR)
Hindustan Unilever Ltd. (HUL) is a renowned consumer goods company. It is a subsidiary of Unilever, a British company and was incorporated in 1931. It is a market leader in the Food and Beverages and Home and Personal Care Products sector. Its portfolio includes personal care products, foods, beverages, cleaning agents, water purifiers, and other fast-moving consumer goods (FMCG).
As of 18 May 2024, Hindustan Lever’s shares were trading at Rs. 2,327.15 on NSE and Rs. 2,330.70 on BSE. The company’s market capitalisation stood at Rs. 5,47,619 crore.
3. HDFC Bank Ltd. (HDFCBANK)
As of May 2024, HDFC Bank became the world’s tenth-largest bank by market capitalisation and the country’s largest private sector bank by assets. It was established in 1994, with operations beginning from its registered office in Mumbai in 1995. Its long market standing, strong balance sheet, and growth trajectory make it worth having in your portfolio.
HDFC Bank’s share was trading at Rs. 1,466.05 on NSE and Rs. 1,465.25 on BSE as of 18 May 2024. The company’s market capitalisation was worth Rs. 11,14,657 crore.
4. Reliance Industries Ltd. (RELIANCE)
Reliance is an essential conglomerate in the Indian economy with a diversified portfolio in petrochemicals, energy, telecom, retail, natural resources, textiles, and refining. The company is a lucrative long-term investment for NRIs, especially with India’s progress towards digitisation contributing to the company’s sustained growth. Its innovation and commitment make it a safe and sure bet for investors.
As of 18 May 2024, Reliance’s share was trading at Rs. 2,869.65 on NSE and Rs. 2,868.55 on BSE. The Ambani-led company’s market capitalisation was worth Rs. 19,41,575 crore.
5. Tata Motors (TATAMOTORS)
Tata Motors is a multinational automotive company with headquarters in Mumbai, India. It is a subsidiary of the Tata Group and manufactures cars, vans, buses, and trucks. It was founded in 1945 by the world-famous JRD Tata. The company has consistently improved its operating performance, which is evident in its lowered net debt and dividend payments. This makes it worth considering for your NRI investment portfolio.
As of 18 May 2024, Tata Motors share closed at Rs. 953.95 on NSE and Rs. 953.75 on BSE. The company’s market capitalisation was worth Rs. 3,17,068 crore.
Summing up
As an NRI, you often look at your home country for investment opportunities, especially in public and private sector company stocks. It is because you are familiar with the companies and sectors and feel comfortable. The above stock recommendations are based on company fundamentals and market trends for 2024. Make sure you study the latest financial news and trends before investing. You can also consult investment professionals or financial advisors who are experts in the Indian market to help you develop a portfolio based on your financial goals and risk appetite.
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