- India has become the world's fifth-largest equity market by market capitalization at $5.05 trillion
- Taiwan and South Korea fell below $5 trillion after recent corrections in tech and semiconductor stocks
- India's market cap rose 2.75% in June, outperforming South Korea, Taiwan, Japan, and Hong Kong
India has regained its position as the world's fifth-largest equity market by market capitalisation after recent corrections in Taiwan and South Korea dragged both markets below the $5 trillion mark.
India's total market capitalisation currently stands at $5.05 trillion, ahead of Taiwan ($4.97 trillion) and South Korea ($4.66 trillion). The US continues to be the world's largest equity market, followed by China, Japan and Hong Kong.
The reshuffle comes after sharp profit-booking in Taiwanese and South Korean equities, particularly in technology and semiconductor stocks that had rallied strongly earlier this year on optimism around artificial intelligence (AI). Investors also remain cautious amid shifting global risk sentiment, while easing crude oil prices following the resumption of tanker movement through the Strait of Hormuz supported broader emerging-market sentiment.
Indian equities have outperformed most global peers in June. India's market capitalisation has risen 2.75% so far this month, while South Korea's market value has declined 4.7% and Taiwan's has fallen 2.3%.
The US and China have largely traded flat during June, while Japan's market capitalisation has slipped 1.06%. Hong Kong has been among the weakest performers, declining 8.3%, while Germany has fallen 5.6%. Canada, the UK and France have also registered declines during the month.
The gains in Indian equities have been reflected in benchmark indices as well. In dollar terms, the Sensex has advanced 3.8% in June, while the Nifty 50 is up 2.8%. Broader markets have also remained resilient, with the BSE MidCap 150 Index gaining 1.3% and the BSE SmallCap 250 Index rising 4.4%.
Despite reclaiming the fifth spot globally, India's performance for the year remains relatively subdued compared with several Asian peers.
On a year-to-date basis, India's market capitalisation is down 4.8% in dollar terms. In contrast, South Korea has surged 74%, while Taiwan has gained 52%, driven by strong investor interest in AI-related technology companies. China's market capitalisation has increased 13.5%, Japan's 11.7%, while the US has gained 10%. Among other major markets, Canada is up 4.3%, whereas Hong Kong, France and Germany remain in negative territory for the year.
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