Taiwan overtakes India as world's 5th largest stock market Taiwan's stock market has surpassed India's in value, marking a significant shift in global equity rankings. As of May 26, 2026, Taiwan's market capitalization reached $4.95 trillion, overtaking India's $4.92 trillion. This transition is primarily attributed to the explosive growth of Taiwan Semiconductor Manufacturing Co. (TSMC), which now constitutes about 42% of the island’s benchmark index. TSMC’s shares surged 49% in 2026, driven by its dominant position in the artificial intelligence (AI) semiconductor sector. The chipmaker’s success has fueled optimism about AI’s transformative impact on global markets, disproportionately benefiting manufacturing hubs like Taiwan and South Korea. India, meanwhile, faces challenges that have dampened its stock market performance. The country’s equity value has declined to $4.92 trillion, with its market index dropping 8% this year. Factors such as surging energy costs, slowing corporate earnings growth, and a lack of direct AI-related companies have contributed to this decline. Foreign investors have sold nearly $24 billion in Indian equities since the start of 2026, as they redirected capital toward AI-driven opportunities in Taiwan and South Korea. India’s weight in the MSCI Emerging Markets Index has also fallen to 12% from 19% in 2025, reflecting reduced global confidence in its market. The rise of Taiwan’s stock market is further amplified by regulatory changes. Taiwan’s financial regulator recently raised the investment limit for domestic funds in individual stocks, allowing funds focused solely on Taiwanese equities to hold up to 25% of their net assets in any company whose weighting exceeds 10% in the Taiwan Stock Exchange.#taiwan_semiconductor_manufacturing_co #taiwan_stock_market #taiwan_semi_conductors #india_stock_market #taiwan_stock_exchange
