South Korea overtakes India: the Asian giant falls to 7th place in the world stock markets

India has slipped another place in the global stock market rankings by market capitalization, falling to seventh after being overtaken by South Korea. This shift reflects the difficulties faced by Indian stocks since the beginning of the year, while South Korean technology stocks are reaping the benefits of the artificial intelligence boom.

According to market data, the combined value of companies listed on major South Korean stock exchanges reached $5,01 trillion, surpassing the $4,85 trillion of companies listed on the Indian National Stock Exchange. This growth allows South Korea to become the sixth largest stock market in the world.

The rise in South Korean markets was largely fueled by semiconductor manufacturers and companies involved in artificial intelligence. Investors overwhelmingly supported these stocks, which were seen as the big winners of the ongoing technological revolution.

Conversely, Indian markets have suffered from several adverse factors. Persistent selling by foreign investors, disappointing earnings growth, and more limited exposure to companies directly involved in AI have weighed on valuations. The Nifty 50 index has fallen by more than 10% since the beginning of the year, while the Sensex has lost more than 12%.

The Indian technology sector was particularly hard hit. The index tracking the country's leading IT stocks fell by 19%, as investors worried about less dynamic growth prospects and slowing demand in some international markets.

This slowdown is all the more striking given that India was until recently considered one of the favorite destinations for investors in emerging markets. According to Bernstein analysts, just eighteen months ago, India's market capitalization was approximately three and a half times that of South Korea and more than twice that of Taiwan.

Having already been overtaken by Taiwan last month, India has now lost another position in the global rankings. This development illustrates how quickly financial markets can be disrupted by shifts in investor perception and the rise of artificial intelligence-related sectors.