India has reclaimed its position as the world’s fifth-largest stock market by market capitalisation, climbing back after briefly slipping to seventh place earlier this month. India’s total market capitalisation now stands at $5.04 trillion, overtaking Asian peers Taiwan ($5 trillion) and South Korea ($4.7 trillion).
The shift in global rankings is due to a combination of profit-taking in Taiwan and South Korea, alongside gains in Indian equities driven by easing crude oil prices and the reversal of foreign portfolio investor (FPI) selling in the past two weeks. In June, the benchmark Nifty gained 2.1 per cent in dollar terms, while the broader Nifty Smallcap 100 rose 3.4 per cent. India’s total market capitalisation increased by $135 billion in June, while South Korea’s declined by $230 billion and Taiwan’s by $119 billion. Over the past two weeks, FPIs have been net buyers of $1.27 billion worth of Indian shares. Brent crude prices have fallen by 37 per cent from recent peaks and are now trading at $74 per barrel, just $1 above pre-US-Iran war levels.
However, despite these recent gains, India’s Nifty lags South Korea’s benchmark KOSPI and Taiwan’s TAIEX by a wide margin on a year-to-date (YTD) basis. In YTD dollar terms, the Nifty is down 12.7 per cent, while the KOSPI has rallied 86 per cent and the TAIEX 53 per cent. The rally in the market value of the two Asian chipmaking hubs has been fuelled by investor enthusiasm for companies benefiting from the global AI boom. Consequently, India’s share of global market capitalisation now stands at 3.08 per cent, after slipping below the 3 per cent mark for the first time in four years last month. Going forward, India’s market gains will depend on the resolution of the US-Iran war, the trajectory of the monsoon, and the direction of the global AI trade.
First Published: Jun 29 2026 | 6:46 PM IST
