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Tech Giants Fuel Asia's Markets: India Trails
29 May
Summary
- Taiwan and South Korea markets rise, driven by tech giants.
- India's market cap decreased by 7% due to FPI selling.
- AI-focused tech companies attract significant foreign investment.
Equity markets in South Korea and Taiwan have significantly outperformed India in 2026, with their rallies predominantly powered by a few major technology stocks.
Taiwan's market cap has surged by 54%, with TSMC alone accounting for nearly 38%. Similarly, South Korea's market has grown by 81%, with Samsung and SK Hynix contributing substantially to its $4.8 trillion valuation.
In contrast, India's market cap has contracted by 7% this year. This decline is attributed to persistent selling by foreign portfolio investors (FPIs), who have divested $24.3 billion in equities as of May 27, 2026.
Technology companies linked to the artificial intelligence (AI) ecosystem have been particularly attractive to FPIs. Excluding key tech players like TSMC and Samsung, the growth figures for Taiwan and South Korea are reduced, yet still significant compared to India's shrinking market.
Despite the current market performance, India possesses a broader and deeper capital market, boasting over 6,186 actively traded stocks compared to Taiwan's 2,437 and South Korea's 2,730.
