New Delhi: South Korea has surpassed India in global stock market rankings, with the total market capitalisation of Korean-listed companies surging 86%
this year to $5 trillion, while India’s has slipped to $4.8 trillion, according to data compiled by Bloomberg. The shift makes South Korea the world’s sixth largest equity market, having also overtaken Canada, Germany, the United Kingdom and France this year.
The driving force behind Korea’s extraordinary market run is the artificial intelligence investment boom, which has sent chip stocks surging to record valuations. Samsung Electronics and SK Hynix, both now members of the $1 trillion valuation club, have powered the Kospi to gains of more than 100% in 2026 through their dominant position in AI memory chip supply chains.
Why India is falling behind
India’s market decline tells a contrasting story. A weakening rupee, record foreign outflows and a near-complete absence of companies directly linked to AI infrastructure have weighed heavily on Indian equities. Global funds have offloaded around $26 billion of Indian stocks this year, as elevated energy costs have stoked inflation concerns and clouded the country’s near-term growth outlook. India’s benchmark stock index is down roughly 11% in 2026, putting it on course for its first annual decline in a decade.
Market cap vs GDP: India holds its ground
Despite losing ground in market capitalisation, India’s economic scale remains far larger. India’s GDP stands at $4.15 trillion, one of the fastest growing in the world, compared to South Korea’s $1.93 trillion, according to IMF estimates. The gap highlights a key distinction, which is India’s stock market does not yet reflect the full weight of its economic heft, partly because the country lacks the kind of globally dominant technology exporters that have boosted Korea’s market capitalisation this year. Until that changes, the AI-driven divergence between the two markets is likely to persist.
