Taiwan Overtakes India in Stock Market Value

Taiwan became the world’s fifth-largest stock market on 25 May 2026, when its market capitalisation reached US4.95 trillion and India’s market value stood at US4.92 trillion. Taiwan’s rise followed a sharp rally in Taiwan Semiconductor Manufacturing Co., the world’s largest chipmaker.

Global Stock Market Ranking

The world’s largest stock markets are the United States, mainland China, Japan, Hong Kong, Taiwan, and India in the latest ranking. Taiwan had earlier moved ahead of Canada in April 2026 and the United Kingdom in the same month.

Taiwan Semiconductor Manufacturing Co.

Taiwan Semiconductor Manufacturing Co. is the largest contract chipmaker in the world and a major constituent of Taiwan’s benchmark index. The company accounts for more than 42% of the benchmark index, which makes the market highly concentrated. TSMC shares rose 49% in 2026 by 26 May 2026, driven by demand for artificial intelligence semiconductors. Artificial intelligence semiconductors are chips used in data centres, graphics processing, and machine learning systems.

India’s Market Position

India’s stock market value fell to US$4.92 trillion after record foreign outflows in 2026. Elevated valuations, a weaker rupee, surging energy costs, and slower corporate earnings growth were among the factors linked with the decline.

Regulatory and Investment Context

Taiwan’s financial regulator raised the ceiling for domestic funds to invest in a single stock to 25% of net assets. The rule can affect large holdings in companies such as TSMC and can influence domestic fund allocation patterns.

Important Facts for Exams

• Market capitalisation is the total value of all listed shares of a stock market or company.
• TSMC stands for Taiwan Semiconductor Manufacturing Co., which is based in Taiwan.
• Hong Kong remains ahead of Taiwan in the global stock market ranking in 2026.
• Foreign outflows refer to net selling by overseas investors in a domestic market.

Stock Market Terms

Market capitalisation is calculated by multiplying a company’s share price by the number of outstanding shares. Benchmark index is a standard stock index used to track the performance of a market.