Equity markets in South Korea and Taiwan are outpacing India, driven mainly by handful of tech firms. Taiwan's market cap jumped 54% in 2026, while South Korea's soared by 81%. In contrast,India’s market cap shrank nearly 7% during same time,largely due to heavy outflows from foreign portfolio investors (FPIs).
The tech sector is key here. In Taiwan,the Taiwan Semiconductor Manufacturing Company (TSMC) makes up about 38% of the nation's $5 trillion market cap. That concentration is striking—just five companies account for half of the market cap, and top ten represent 56%. Over in South Korea, Samsung and SK Hynix together hold 46% of a $4.8 trillion market cap,with the top ten stocks making up 58% of the total .
India tells different story. The top three firms—Reliance Industries, HDFC Bank,and Bharti Airtel—each valued over $100 billion,contribute only 9% to India's overall market cap of $4.9 trillion. The top ten stocks add up to just over 18%,showing wider spread of market value compared to their East Asian neighbors .
As of late May 2026,foreign investors have offloaded $24.3 billion (around ₹2.3 lakh crore) in Indian equities, surpassing last year’s outflow of $18.9 billion (about ₹1.7 lakh crore). This selling trend has played a part in the drop of India’s market cap, with no gains from the top ten stocks reported this year .
Despite having more actively traded stocks—over 6,186 compared to South Korea's 2,730 and Taiwan's 2,437—India's capital market struggles to lure foreign investment. The appeal of tech firms tied to the artificial intelligence (AI) sector has drawn FPIs to South Korea and Taiwan,leaving India lagging .
If we exclude the major tech players, Taiwan's market growth falls to about 48%,while South Korea's drops to 40%. The impact of these tech giants on their markets is clear. As the global economy shifts, the performance of these nations' equity markets may keep diverging,driven by few key players.
