India Reclaims Spot as World's Fifth-Largest Equity Market, Market Cap Tops $5 Trillion

New Delhi: India has once again become the world's fifth-largest equity market after its total market capitalisation crossed the $5 trillion mark, overtaking Taiwan and South Korea amid a strong performance by domestic equities.

India's total stock market value now stands at more than $5 trillion, ahead of Taiwan's $4.97 trillion and South Korea's $4.66 trillion. The United States and China continue to occupy the top two positions, with their market capitalisations remaining largely unchanged during the period.

The shift in rankings comes as investors booked profits in Taiwan and South Korea following months of sharp gains driven by artificial intelligence (AI) and semiconductor stocks. In contrast, Indian equities remained comparatively resilient despite weakness across several global markets.

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During June, India's market capitalisation rose by 2.75 per cent, while South Korea and Taiwan witnessed declines of 4.7 per cent and 2.3 per cent, respectively.

Other major global markets also posted losses during the month. Japan's market capitalisation fell by around 1 per cent, Hong Kong declined more than 8.3 per cent, Canada slipped 3 per cent, the United Kingdom lost about 2 per cent, France dropped 1.1 per cent and Germany fell 5.6 per cent.

Market experts attributed India's strong performance to easing crude oil prices, more reasonable market valuations and continued foreign institutional investor interest.

Analysts also pointed out that the benchmark Nifty's price-to-earnings (P/E) ratio has moderated from nearly 24 times to around 18 times, making Indian equities more attractive to investors.

The country's benchmark indices have also outperformed many of their global counterparts this month. In dollar terms, the Sensex has gained nearly 4 per cent, while the Nifty has advanced close to 3 per cent, reflecting sustained investor confidence in the Indian market.

With inputs from IANS