Taiwan Challenges India for Fifth Largest Market Cap Spot
Taiwan's market capitalization reached 4.89 trillion dollars on Tuesday, nearly matching India's 4.92 trillion dollars. The shift follows a 44 percent surge in TSMC shares this year while Indian benchmarks have declined amid weak earnings and significant foreign investor outflows.
Taiwan is poised to overtake India as the world’s fifth-largest equity market as AI-driven capital flows shift toward semiconductor hubs. For investors, this shift signals a rotation from diversified emerging markets toward concentrated AI infrastructure plays.
### The AI Performance Gap India’s primary indices are among the global laggards in 2025, with the UTI NIFTY 50 ETF down 8.5% and the UTI BSE SENSEX ETF falling 10.8%. Vallum Capital CEO Manish Bhandari said the Indian market lacks direct equivalents to the AI trade or large-scale infrastructure businesses like NVIDIA CORP. In contrast, Taiwan’s benchmark has surged 50.3% this year, fueled by a 44% rise in its dominant chip-making major.
