South Korea has overtaken India to become the world’s sixth-largest stock market by market capitalisation, driven by a strong rally in technology and semiconductor stocks.
Statistical reports show the combined value of companies listed in South Korea has crossed $5 trillion, ahead of India’s market capitalisation of about $4.8 trillion. The shift has pushed India to seventh place in global stock market rankings.
The rise has largely been powered by the global artificial intelligence boom. South Korean chipmakers such as Samsung Electronics and SK Hynix have attracted strong investor interest as demand for AI-related chips and data-centre infrastructure continues to grow.
Indian markets, meanwhile, have faced pressure from weaker corporate earnings, foreign investor outflows and a weaker rupee. The absence of major AI-focused companies in benchmark indices has also limited gains compared with technology-heavy markets.
The latest development comes shortly after Taiwan moved ahead of India in global market rankings, causing India to slip from fifth to seventh position within a relatively short period.
The rankings underline the growing impact of AI-driven investments on global markets, with countries that have strong semiconductor industries benefiting the most from the ongoing technology boom.
Despite the decline, analysts remain positive about India’s long-term outlook. They point to strong economic growth, rising domestic participation in equities and continued infrastructure investment as key strengths supporting future market expansion.