Global stock market ranking shifts as South Korea leads, India slides amid AI chip boom

India’s stock market ranking has slipped again within days. India was the world’s fifth-largest market two years ago. Taiwan moved ahead first, and South Korea followed. South Korea now ranks sixth by market capitalisation, while India has dropped to seventh.

Recent market data puts South Korea’s total market capitalisation near $5 trillion. India’s market value is about $4.8 trillion. The shift came as Korean shares rallied, while Indian equities faced pressure. Key drags included FII selling and a weaker rupee.

South Korea’s rise was led by technology and semiconductor stocks tied to the AI boom. Samsung Electronics and SK Hynix benefited most from this demand. Both firms are now in the $1 trillion valuation club. Samsung shares rose 196% in 12 months, while SK Hynix jumped 329%.

The benchmark KOSPI index hit record highs during the run. It is up more than 110% so far in 2026. South Korea is a major maker of advanced memory chips. Global AI adoption lifted chip demand. Strong exports and earnings drew domestic and overseas investors.

India’s lower rank does not, by itself, signal a weak economy. Still, market factors reduced India’s dollar-based market capitalisation. A softer rupee lowered the US dollar value of Indian shares. FIIs also pulled billions of dollars, citing valuation concerns and shifting global allocations.

India keeps major economic scale despite the ranking change. The economy is estimated at over $4 trillion. It remains among the fastest-growing large economies. The Nifty 50 is down 8.5% in 2026. Analysts expect a possible negative year, which would be the first since 2015.

Item	South Korea	India
Global stock market rank by market capitalisation	6th	7th
Total market capitalisation (approx.)	$5 trillion	$4.8 trillion
2026 benchmark move	KOSPI +110%+	Nifty 50 -8.5%
Key stock gains	Samsung +196%, SK Hynix +329% (12 months)	Not stated

South Korea moved ahead of India as AI-linked chip shares lifted Korean market value. At the same time, India’s dollar market capitalisation fell due to rupee weakness and FII withdrawals. India remains a large, fast-growing economy, but equity returns in 2026 have been weaker, with the Nifty 50 down 8.5% so far.