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Earlier, in the last week of May, Taiwan had jumped ahead of India after crossing $5 trillion in market cap.
Agenciesfpi selling a drag on india
The two Asian markets are in a bull phase, helped by record financial performance from semiconductor manufacturers amid booming demand from the artificial intelligence (AI) ecosystem. South Korean equities have gained 88% in 2026 so far while Taiwan has expanded market cap by 58%. India’s market cap, on the other hand, has fallen by over 8% since the beginning of the current calendar year, impacted by heavy selling from foreign portfolio investors (FPIs) amid geopolitical uncertainties in West Asia. They have sold equities worth $24 billion (₹2.2 lakh crore) in the first five months of 2026 compared with $18.9 billion (₹1.7 lakh crore) in the whole of 2025.
Samsung Electronics and SK Hynix, South Korea’s two largest companies by market cap, have led the current rally in local equity markets with a year-to-date gain of 182% and 231% on bourses. The Asian semiconductor companies are benefitting from the rising AI capital expenditure since memory chips are a part of the building blocks of the technology.
https://img.etimg.com/thumb/msid-131473574,width-1200,height-630,imgsize-122632,overlay-etmarkets/articleshow.jpg
https://economictimes.indiatimes.com/markets/us-stocks/news/south-korea-rides-ai-wave-also-overtakes-india-on-m-cap-chart/articleshow/131473573.cms
