Kathmandu. Taiwan’s stock market has overtaken India in terms of total valuation (market capitalization). The pace was driven by a sharp rise in shares of Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest chipmaker.
According to Bloomberg data, Taiwan’s market capitalization reached $ 4.95 trillion. The total valuation of the Indian stock market has fallen to $ 4.92 trillion (as of Monday’s market close). Taiwan is now the world’s fifth-largest stock market after the US, China, Japan and Hong Kong.
How did Taiwan get this position?
Chipmaker TSMC is credited with lifting Taiwan’s stock market up the global rankings.TAG_OPEN_li_30
TSMC alone accounts for about 42% of Taiwan’s benchmark index.TAG_OPEN_li_29 Which reflects its immense market dominance.
The company’s stock has risen by 49 TAG_OPEN_li_28% this year due to the growing global demand for artificial intelligence (AI). The company dominates the global market for AI chips (semiconductors).
5 reasons why India lags behind
Despite significant domestic strength, the Indian stock market has been under pressure this year. There are many reasons for this.
- Global investors are withdrawing money from high-value markets like India and investing in markets like Taiwan and Korea. Where they can bet directly on AI and semiconductor topics.
Foreign TAG_OPEN_li_26 Institutional Investors (FIIs) have sold a remarkable amount of about $24 billion from the Indian market this year.
The rise in crude oil and energy prices due to Iran-US geopolitical tensions has raised concerns about India’s growth outlook and inflation.TAG_OPEN_li_25
The main Indian stock market index is down about TAG_OPEN_li_24 8 percent this year. That’s the first annual decline after a decade of steady gains.
As a result, India’s weight in the MSCI Emerging Markets Index has also dropped from 19 per cent last year to around TAG_OPEN_li_23 12 per cent.
