South Korea has overtaken India to become the world’s sixth-largest stock market after a sharp rally in AI-linked semiconductor stocks. Bloomberg data shows South Korean listed firms’ market capitalisation surged 86% to about $5 trillion, driven by chipmakers Samsung Electronics and SK Hynix, both boosted by global demand for AI infrastructure. India’s market value, meanwhile, has slipped to around $4.8 trillion.
India Loses Rank Amid Foreign Outflows
India, which was earlier among the top five markets, has now fallen to seventh after also being overtaken by Taiwan recently. The drop comes amid $26.4 billion in foreign investor outflows, weakening rupee, inflation concerns, and slowing earnings growth.
Benchmark indices like Nifty and Sensex are down over 10%, while the IT index has fallen nearly 19%.
Shifting Global Market Leadership
The global top ranks remain led by the US, China and Japan, while Taiwan and South Korea have moved ahead of India, reshaping emerging market standings. Despite India’s economy being over twice the size of South Korea’s ($4.15 trillion vs $1.93 trillion, IMF estimates), stock market performance has diverged sharply.
Policy Push and Market Outlook
South Korea’s rise has also been supported by governance reforms and strong tech sentiment, pushing the Kospi to record levels. However, analysts warn gains remain concentrated in a few chip firms.
Experts say India’s long-term consumption story remains intact, but inflation and infrastructure gaps are weighing on near-term investor sentiment.
