‘India Is Very Diversified Market,’ Says SEBI Chief on Taiwan Surpassing India's Value

As Taiwan surpassed India in total stock market value, SEBI Chairman Tuhin Kanta Pandey said India is a diversified market, while Taiwan has a more concentrated market led by stocks like TSMC.

According to Bloomberg data, Taiwan’s total market capitalisation climbed to $4.95 trillion as of Monday, marginally surpassing India’s $4.92 trillion. The development makes Taiwan the fifth-largest equity market globally, behind only the US, mainland China, Japan and Hong Kong.

“India is a very, very diversified market. In Taiwan, there are concentrated stocks. There are very few. There are specific companies. The TSMC and others which are very, very critical to the electronic supply chain, they are getting a lot more flows and leading to their higher valuations. I don't have to comment on this. This is something which goes on in a capital market,” Pandey said at an event in Mumbai on May 26.

AI Trade Driving Shift

Taiwan’s sharp rise has been largely powered by Taiwan Semiconductor Manufacturing Company, the world’s largest contract chipmaker, whose shares have surged 49% this year amid growing optimism around artificial intelligence (AI). The company now represents around 42% of Taiwan’s benchmark index, highlighting the market’s heavy concentration around a single AI-linked company.

Pandey said the ongoing global rally in AI-linked stocks is reshaping market valuations across countries. He noted that companies directly or indirectly linked to AI including those involved in chips, memory and electronics infrastructure are currently among investors’ preferred bets globally.

According to him, exceptional investor interest in such companies is leading to sharp valuation gains in markets where these firms hold significant weight.

The rise also reflects the continued strength of the AI investment theme, which has sparked a broader global technology rally and disproportionately benefited markets closely tied to semiconductor manufacturing and AI infrastructure.

India Faces Headwinds

While Taiwan moved ahead in market value, India continues to remain one of the world’s fastest-growing economies. According to International Monetary Fund estimates, India’s economy stands at around $4.15 trillion compared with Taiwan’s roughly $977 billion economy.

However, Indian equities have faced pressure this year amid persistent foreign fund outflows, high valuations and a weaker rupee. Higher energy costs and concerns over slower earnings growth have also weighed on sentiment.

Global investors have sold nearly $24 billion worth of Indian equities so far this year as capital shifted toward AI beneficiaries in Taiwan and South Korea. Indian benchmark indices are down nearly 8% and are heading toward their first annual decline after a decade of gains.