6 hours ago 2

Indian investors show resilience amid volatility; Nvidia, Tesla emerge as top stock picks

Jul 12, 2025, 01:53:44 PM IST

Q2 2025 was marked by market volatility triggered by President Trump's tariff announcement and geopolitical uncertainty, which caused a brief market panic. The S&P 500 saw a significant drop of over 13% during the month, with volatility spiking to crisis levels. However, markets quickly rebounded as trade tensions eased and tariffs landed closer to 13%.

Despite the turbulence, Indian investors on Vested Finance displayed remarkable resilience, indicating a clear conviction to stay invested. Data compiled by Vested Finance highlights how Indian investors are navigating this chaos with clarity and conviction. Amidst heightened market risks, they continued to make strategic investments, expanding beyond just tech and adding diversified holdings across sectors and geographies.

ETMarkets.com

Nvidia dominated the buy and sell charts, reflecting both profit-taking and buy-the-dip strategies, capturing 6.4% of buy volumes and 8.3% of sell volumes. Other leading stocks like Tesla, Alphabet, AMD, and Apple also saw significant volumes, with Alphabet standing out due to the highest net inflows and a 113% increase in unique investors. The data showed a surge in interest across microcaps and innovative stocks, with Duolingo's investor count jumping 2,255% and healthcare leaders like UnitedHealth Group and Novo Nordisk seeing over 500% growth.

Agencies

Highly volatile stocks saw significant churn, with crypto exposure stocks like MicroStrategy and Coinbase experiencing sharp exits. Although Nvidia and Tesla were among the most traded, both saw net outflows, confirming that these were tactical moves rather than panic exits. Many investors re-entered positions in the same names within weeks, marking a strategic re-engagement distinct from previous behaviors in Q1.

ETMarkets.com

4/8

ETF Trends: Index, semiconductor, and small caps in focus

Index ETFs like QQQM, QQQ, and VOO dominated, with QQQM investor count rising 131%, SOXX up 101%, and VOO increasing by 47%. Small-cap ETFs saw substantial growth, with IJR's investor base up 222% and IWM jumping 622%. These trends point to early-stage thematic positioning, where investors are focusing on innovation and recovery rather than broad risk-on sentiment.

ETMarkets.com

While U.S. large caps remained the core focus, there was a noticeable tilt towards global diversification. ETFs tracking Europe (VGK), China (FXI, CWEB), and Brazil (EWZ) saw increased interest. This shift was partly driven by the 7% fall in the USD index and diverging central bank policies, with the ECB cutting rates while the Fed held its position. Investors sought to hedge currency risk by adding non-dollar exposure through these ETFs.

6/8

Healthcare & Small Caps Shine

Healthcare and small-cap stocks were the standout sectors in Q2, with XLV, a healthcare sector ETF, seeing a 1,087% increase in unique investors due to growing interest in GLP-1 drugs and AI diagnostics. Small-cap stocks like CRSP, SOUN, and DUOL saw their investor base grow by 300–800%. Investors diversified across sectors, with inflows into ETFs like SCHD, VUSB, and SLV, indicating a move towards portfolio balance.

ETMarkets.com

Q2 wasn't about momentum but about methodical re-engagement. Net buy volumes exceeded sell volumes by 18.2%, while average portfolio size grew by 12.6%. Platform AUM rose 35.4% QoQ, and thousands of investors added new stocks like ASML and NU Holdings to their portfolios, with user growth in ASML up by 124% and NU Holdings up 899%. This shift reflects a broad-based, disciplined approach across sectors, asset classes, and regions.

Agencies

8/8

What the quarter tells

In a volatile Q2, Indian investors on Vested Finance showed maturity by repositioning around uncertainty. They moved away from crowded megacaps, focused on high-conviction themes, and diversified with more intelligent ETF exposure, international bets, and income strategies. Healthcare, semiconductors, small caps, and AI-adjacent sectors are now firmly part of their core playbook. The same investors who trimmed risk during tariff spikes came back to rebuild positions, signaling a shift from speculative trading to building conviction.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)