Newsletter
Taiwan has officially overtaken India in stock market value and one company is driving most of that story: Taiwan Semiconductor Manufacturing Company or TSMC.
What’s happening: SEBI Chairman Tuhin Kanta Pandey weighed in on the development and said that India’s market is far more diversified, while Taiwan’s rally is heavily concentrated around a few companies, especially TSMC.
Taiwan’s total stock market value has climbed to nearly $4.95 trillion, slightly ahead of India’s $4.92 trillion, making it the world’s fifth-largest stock market.
And the biggest reason behind this jump is the global AI boom.
TSMC, the world’s largest chipmaker, has seen its shares surge 46% this year as demand for AI chips exploded worldwide. The company alone now makes up nearly 42% of Taiwan’s benchmark stock index.
Taiwan also recently changed investment rules to allow domestic funds to put more money into a single stock and right now, TSMC is the biggest beneficiary of that move.
India, meanwhile, is facing a different set of challenges.
Foreign investors have been pulling money out of Indian markets amid high valuations, rising energy costs, slower earnings growth and the lack of major AI-linked companies driving market excitement.
