The has now slipped to the seventh slot in the global market cap rankings, losing its spot to South Korea, as its underperformance continues with no immediate signs of reversal. Last week, .
According to Bloomberg data, the total market cap of Korea-listed companies has jumped to $5 trillion, while India’s has declined to $4.8 trillion. The sustained AI trade has powered the Korean stock market’s 85% valuation surge this year.
Semiconductor giants . and SK Hynix Inc, among the newly minted members of the $1 trillion valuation club, together account for a significant share of the Kospi index, signaling high level of market capitalisation. A similar trend was seen in the case of Taiwan, as TSMC accounts for 40-50% of Taiwan’s market cap.
According to market participants, such extreme concentration means that index performance is increasingly tied to the fortunes of a single company, amplifying both upside momentum and downside vulnerability.
India on backfoot
India, on the other hand, has emerged as an anti-AI trade. It has cost its stock market heavily. A quick look at this year’s global market winners shows that a large chunk of the gains have come from tech-heavy names. South Korea’s KOSPI index has zoomed 99% in 2026 so far, while Taiwan’s mainboard index is up 55% and the tech-heavy US benchmark has jumped 21% in the same period.
In contrast, the Indian stock market has lost 11% and remains on track to record its first annual fall after a decade of positive returns. To add to India’s problems, the energy shock has led to downward revision of India’s GDP growth and upward revision of inflation this financial year.
High oil prices are negative for India’s CAD/BoP, fiscal deficit, growth and inflation, and the impact of crude oil prices is non-linear, said Kotak Institutional Equities. In its base-case scenario, it assumes an end to the West Asia war over the next few days or weeks with a gradual reopening of the Strait of Hormuz (SoH) after that.
Adding to it, India now faces the additional threat of the IMD’s latest projection of monsoon rains at 90% of long-term average, which will have negative implications for growth and inflation and India Inc’s earnings. The Q4FY26 results were decent, but Q1FY27 could be bumpy.
“A resolution of the and the consequent dip in crude price will be a big positive; but expectations on that front have been belied, and the issue continues to hang fire,” said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.