India Reclaims Fifth Position in Global Market Capitalisation Rankings

India has regained its position as the world’s fifth-largest equity market by market capitalisation, overtaking Taiwan and South Korea after both markets witnessed a sharp correction amid profit booking in technology and semiconductor stocks.

India’s total market capitalisation currently stands at $5.05 trillion, compared with $4.97 trillion for Taiwan and $4.66 trillion for South Korea. The United States continues to lead the global rankings, followed by China, Japan and Hong Kong.

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Indian Markets Outperform Global Peers

Indian equities have delivered relatively stronger performance in June despite weakness across several global markets. During the month, India’s market capitalisation increased 2.75%, while South Korea’s declined 4.7% and Taiwan’s fell 2.3%, pushing both markets below the $5 trillion mark.

Among other major markets, Hong Kong recorded the steepest decline with an 8.3% fall in market capitalisation. Germany slipped 5.6%, Canada lost 3.1%, Japan fell 1.06%, France declined 1.1%, while the U.S. and China remained broadly unchanged during the period.

On the domestic front, the Sensex gained 3.8% in dollar terms during June, while the Nifty 50 advanced 2.8%. Broader markets also remained resilient, with the BSE MidCap 150 Index rising 1.3% and the BSE SmallCap 250 Index adding 4.4%.

Lower Crude Prices Support Sentiment

The recent improvement in Indian equities coincided with a sharp decline in international crude oil prices after shipping activity through the Strait of Hormuz normalised. Lower oil prices are viewed as supportive for India, one of the world’s largest crude importers, as they help reduce the country’s import bill and ease pressure on the external account.

Foreign institutional investor inflows have also strengthened market sentiment in recent sessions, while equity valuations have moderated after earlier highs.

According to ICICI Securities, the Nifty 50 historically shares an inverse relationship with crude oil prices when Brent crude trades above the $90-$100 per barrel range. Softer oil prices, therefore, tend to provide a favourable backdrop for domestic equities.

Year-To-Date Performance Remains Mixed

Despite regaining fifth place globally, India’s market capitalisation remains lower on a year-to-date basis. So far in 2026, India’s market capitalisation has declined 4.8% in dollar terms.

By comparison, South Korea has recorded a 74% increase this year, while Taiwan Index has gained 52%. China’s market capitalisation has risen 13.5%, Japan is up 11.7%, the U.S. has added 10%, and Canada has advanced 4.3%. Meanwhile, Hong Kong remains down 9%, while France and Germany have declined 4.1% and 5.5%, respectively.

India’s return to the fifth position reflects its relative resilience during June, supported by improving domestic sentiment and weakness in competing Asian markets, even as global equity performance remains uneven.