The Acche Din for India’s growth story seem to be dimming much quicker than we think. According to recently released data, Taiwan’s stock market has overtaken India’s, with a valuation of $4.95 trillion compared to $4.92 trillion. With this, Taiwan has pushed India to the sixth spot after the United States, mainland China, Japan and Hong Kong.
Taiwan’s highly mature semiconductor industry has become the lynchpin here, with TSMC alone seeing an astronomical 49% surge in share value on a year-to-date (YTD) basis. This has helped it surpass the $2 trillion threshold globally, with an unprecedented 42-45% weight in the Taiwan Weighted Index (TAIEX) benchmark. With this TSMC has become the most valuable Asian technology firm, joining Samsung in the club.
Given that the rise of TAIEX has been almost exclusively based on TSMC’s valuation rise, Taiwan’s financial markets regulator has even altered its rules to allow further inflows to TSMC. Mutual Funds focused strictly on the domestic market can now allocate up to 25% of their assets to a single company, triggering fresh waves of domestic inflows.
For India, this fall to sixth place doesn’t necessarily mean an end to the Acche Din narrative. It shows how a temporary mismatch of global tech trends has affected the markets. Though India’s stock market is fairly diversified, with companies catering to expanding domestic and global demand for infrastructure, digital adoption, and a rising middle class, global fund managers are using this as a strong reminder to diversify their exposure across geographies, especially as opportunities like the AI rush continue to affect overall markets.
