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First it was Taiwan. Now it's South Korea.
India's stock market has slipped to seventh place in the global market capitalisation rankings after South Korea overtook it, becoming the second Asian market to do so in just two weeks.
Breaking it down: as of June 1, South Korea's stock market was worth about $5.04 trillion, ahead of India's $4.84 trillion. Taiwan, which moved ahead of India last week, is now valued at $5.15 trillion.
So, what changed? The answer is AI.
South Korea and Taiwan have become some of the biggest beneficiaries of the global AI boom. South Korea's KOSPI index has surged more than 110% so far in 2026, while Taiwan's market has gained over 65%, making them two of the world's best-performing markets.
A large part of that rally comes down to semiconductor giants.
South Korea is home to Samsung Electronics and SK Hynix, while Taiwan has TSMC, the company that manufactures many of the chips powering today's AI revolution.
In fact, Nvidia alone is now worth more than the combined value of all listed companies in India.
India, meanwhile, is playing a different game.
While Indian IT companies such as TCS, Infosys and Wipro are benefiting from AI adoption, they mainly help businesses use AI rather than build the chips and hardware driving the current investment frenzy.
India has chip design, engineering and electronics manufacturing capabilities, but it lacks large listed semiconductor giants that investors can directly bet on.
That's where the difference lies.
South Korea and Taiwan spent decades building semiconductor industries through government support, exports and long-term industrial policies.
Those investments eventually created global champions like Samsung, SK Hynix and TSMC, companies that investors are now rushing to own as AI demand explodes.
At the same time, India's markets are facing a tougher environment.
Both the Sensex and Nifty have struggled in 2026, weighed down by geopolitical tensions, a weaker rupee and rising crude oil prices.
With oil climbing above $100 per barrel, concerns around inflation, corporate profits and India's trade balance have also started to grow.
The result? While AI has helped push Taiwan and South Korea higher, India is still waiting for its own AI stock market moment.
