These days a big change is being seen in the stock markets around the world. This is the first time in the history of Asian equity market that Taiwan has left India behind in terms of market capitalization. After this big upheaval, India has now slipped to sixth place, while Taiwan has entered the list of top-5 stock markets of the world.
According to current data, the total market cap of Taiwan has reached $4.95 trillion, while the market cap of the Indian market has remained at $4.92 trillion. This ranking has not changed overnight. Behind this, on one hand, there is the storm of Artificial Intelligence (AI) going on all over the world, and on the other hand, the continuously increasing prices of crude oil, which has changed the mathematics of the entire market.
Only one company is behind Taiwan’s great leap
The major credit for this spectacular success of Taiwan mainly goes to one company – Taiwan Semiconductor Manufacturing Company (TSMC). You will be surprised to know that at present the share of this single company in Taiwan’s major stock index has reached more than 42 percent. This is a very rare example of dominance of a single company in the market. Actually, these days there is a huge enthusiasm about Artificial Intelligence all over the world. This company has almost a monopoly on the market in making essential chips used in AI technology. This is the reason why there has been a tremendous jump of 49 percent in TSMC shares this year. The global tech rally has directly and hugely benefited manufacturing countries like Taiwan.
The real reason for the lagging behind the Indian stock market
On one hand, Taiwan is making new records, while on the other hand, the performance of Indian markets since September 2024 has been much weaker than expected. A huge decline of about 5 percent has been recorded in the major market indices from Sensex to Nifty. Many big reasons are responsible behind this. Continuous withdrawal of money from the market by foreign institutional investors (FIIs), ongoing global trade tensions and weak financial results of companies have weighed heavily on the market.
Apart from this, the fire in crude oil prices due to Iran-Israel dispute has also spoiled the environment. India buys most of the oil it needs from outside. In such a situation, due to oil becoming expensive, there is a fear of rising inflation in the country, which has weakened the confidence of investors. Along with this, the lack of big AI-related companies in India’s major indices also prevented the market from taking advantage of the global tech rally.
Current condition of the world’s biggest markets
America still remains the uncrowned king of the stock market. The US market leads the world with a huge market cap of $77.96 trillion. After this, China occupies second place with 15.57 trillion dollars. Japan is at third place with a market cap of $8.67 trillion, while Hong Kong maintains its strong position at fourth place with a market cap of $7.26 trillion.
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