India tops Taiwan to reclaim fifth spot in global market capitalisation

India has regained the fifth position in global market capitalisation rankings, edging past Taiwan after a correction in the island nation’s AI-driven rally trimmed its market value. On Wednesday, India’s stock market capitalisation stood at $5.04 trillion ($5,041.75 billion), slightly ahead of Taiwan’s $4.97 trillion ($4,970.29 billion). This is India’s second climb in recent weeks. In mid-June, India had overtaken South Korea to reclaim sixth place after briefly slipping to seventh.

The US, China, Japan and Hong Kong remain the four largest markets ahead of India.

Taiwan and South Korea have come under pressure in the past week as investors booked profits following a sharp run-up in semiconductor and AI-linked stocks. The pullback has been on account of concerns over stretched valuations and the durability of AI spending. Both markets have been the top gainers in Asia in 2026.

Earlier, a strong appetite for these North Asian AI-linked stocks had propelled both markets past India. By contrast, India lagged as foreign portfolio investors pared exposure to domestic equities, citing slower earnings growth, premium valuations and the absence of large-scale AI plays.