• India’s total market capitalization climbed to $5.04 trillion, overtaking Taiwan and South Korea.
• Foreign investors returned as net buyers, purchasing $1.27 billion in Indian equities.
• India’s share of global market capitalization recovered above 3% after dipping last month.

India has reclaimed its position as the world’s fifth-largest stock market after a strong June recovery lifted total market capitalization above $5 trillion. 

Notably, renewed foreign investor buying, easing crude oil prices, and steady gains across benchmark indices helped Indian equities recover after briefly slipping to seventh place earlier this month. 

India Returns to Global Top Five

India’s equity market capitalization has increased to approximately $5.04 trillion, moving ahead of Taiwan’s $5 trillion and South Korea’s $4.7 trillion. The recovery marks a reversal after India temporarily lost its fifth-place ranking earlier in June.

Market performance during the month favored Indian equities while Taiwan and South Korea experienced broad profit-taking. India’s listed companies added roughly $135 billion in market value over June, whereas Taiwan’s market capitalization declined by about $119 billion and South Korea lost approximately $230 billion.

Benchmark indices also posted modest gains. The Nifty 50 advanced 2.1% in U.S. dollar terms during June, while the Nifty Smallcap 100 rose 3.4%, reflecting broader participation beyond large-cap stocks.

India’s share of global equity market capitalization also recovered to 3.08% after briefly falling below the 3% threshold for the first time in four years.

Related: Cryptographers Move Closer to Practical Code Obfuscation Despite Major Efficiency Barriers

Foreign Inflows and Lower Oil Prices Boost Sentiment

A major driver behind the rebound has been the return of foreign portfolio investors. After weeks of selling pressure, overseas investors turned net buyers over the past two weeks, purchasing approximately $1.27 billion worth of Indian shares.

Meanwhile, crude oil prices eased significantly during the month. Brent crude retreated to around $74 per barrel after recent highs, reducing concerns about inflation, import costs, and pressure on corporate earnings. Lower energy prices generally improve India’s macroeconomic outlook since the country imports most of its crude oil requirements.

The combination of stronger foreign inflows and improving macro conditions helped restore investor confidence across domestic equities.

AI Rally Keeps Regional Rivals Ahead for the Year

Despite reclaiming fifth place globally, India’s stock market continues to trail Taiwan and South Korea in year-to-date performance.

The Nifty 50 remains down 12.7% in dollar terms this year. By comparison, South Korea’s Kospi has surged about 86%, while Taiwan’s Taiex has gained roughly 53%. Those markets have benefited from sustained investor demand for semiconductor and AI-related companies as spending on artificial intelligence infrastructure continues to accelerate.

Looking ahead, analysts expect India’s market direction to depend on several external and domestic factors. Developments in the Middle East, the progress of the monsoon season, and the durability of the global AI-driven equity rally are expected to remain key themes for investors over the coming months.

Related: Dubai Regulator Issues 50th VASP Licensing to Tribe Tokenisation FZE