By Admin 
Global Market Shock: A big shock has come to the Indian stock market. First Taiwan and now South Korea have also left India behind. Due to the tremendous growth in AI and chip companies, South Korea has now become the sixth largest stock market in the world. India’s ranking has fallen and it has slipped to seventh place. This change shows how fast the AI sector is becoming the new center of economic power in the world.
How did South Korea overtake India?
According to Bloomberg data, the total market capitalization of South Korea’s stock market is expected to reach nearly $5 trillion in 2026. On the other hand, India’s market value declined to approximately $4.8 trillion. For this reason, South Korea left India behind and achieved sixth position.
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AI changed the fate of South Korea
The biggest reason behind this success of South Korea is AI boom. The demand for AI servers, data centers and advanced chips has increased rapidly around the world. The chip companies there have directly benefited from this. Especially Samsung Electronics and SK Hynix registered a tremendous surge in the market. Both companies are among the world’s largest companies in AI memory chips and now their market value has reached the club of 1 trillion dollars.
KOSPI rose by more than 100%
South Korea’s main stock market index KOSPI has jumped more than 100% this year. In the month of May itself, a growth of about 28% was recorded. Due to increase in demand for AI chips, investors invested heavily in tech companies, due to which the entire market reached new heights.
Why did India lag behind?
Experts believe that India’s story has not weakened, but some challenges have pushed the market back. In the last months, foreign investors have withdrawn record amount from the Indian market. Due to this there was pressure on the market. Apart from this, the weakness of rupee against dollar has also affected the confidence of foreign investors. If you understand carefully, compared to South Korea and Taiwan, there are less big companies in India which are directly involved in AI infrastructure and advanced semiconductor business. This is the reason why the Indian market could not get that much benefit from global AI investment.
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Impact of AI visible in exports also
South Korea’s exports increased by more than 53% in May 2026 and a record increase of about 169% was recorded in semiconductor exports. The increasing global demand for AI chips has given new strength to both the country’s economy and stock market.
Is India’s growth story over?
no way. Although South Korea may have overtaken South Korea in terms of market value, India’s economy is still more than twice the size of South Korea. According to IMF, India’s GDP is about 4.15 trillion dollars, while South Korea’s economy is about 1.93 trillion dollars. Experts believe that India’s long-term growth story still remains strong. AI, semiconductor and high-tech sectors will decide the direction of global markets in the coming year. Countries and companies which have a strong presence in AI and chip manufacturing will get the most support from investors.