Taiwan Overtakes India as World 5th Largest Stock Market
Why in the news
Taiwan moved ahead of India in global stock market size by a thin margin, even though India has the larger economy by GDP.
Key facts
- Taiwan: market capitalisation of USD 4.95 trillion.
- India: USD 4.92 trillion, now sixth.
- Driver: AI-led semiconductor boom; TSMC shares up about 45 to 50 per cent in 2026.
- TSMC weight: nearly 42 per cent of the Taiex.
- India side: foreign portfolio outflows in 2026 are a key reason for the slip, though domestic mutual funds and SIP money give a strong buffer.
Top seven markets
| Market | Position |
|---|---|
| South Korea | Seventh |
| India | Sixth |
| Taiwan | Fifth |
| Hong Kong | Fourth |
| Japan | Third |
| China | Second |
| United States | First |
Background
- FPI: foreign investment in listed stocks, bonds and derivatives without seeking control; usually short-term and volatile.
- In India FPIs register with SEBI under the SEBI (Foreign Portfolio Investors) Regulations, 2019, in Category I and Category II.
- Inflows tend to lift stocks and the rupee; outflows pull indices down, weaken the rupee and can raise bond yields.
Exam angle
- India GDP is higher than Taiwan, yet its market cap is lower.
- Company in focus: TSMC; index: Taiex.
- Regulator for FPIs: SEBI.