Overview
- Bloomberg data show Taiwan’s total market capitalisation reached about US$4.95 trillion as of May 25, narrowly ahead of India’s roughly US$4.92 trillion.
- The change was driven almost entirely by Taiwan Semiconductor Manufacturing Company, whose shares have rallied about 49% this year and now make up roughly 42% of the benchmark index.
- Taiwan’s financial regulator in April raised the cap on how much a domestic fund that invests only in Taiwanese stocks can hold in one company from 10% to 25%, a move JPMorgan said could attract several billion dollars more of inflows.
- India has seen roughly US$24 billion of foreign portfolio outflows so far in 2026 and weakness from higher oil costs, a softer rupee, and stretched valuations has reduced its passive index weight and market value.
- The episode highlights a trade‑off: equity rankings can shift quickly on investor flows into a single sector, leaving Taiwan exposed to semiconductor demand swings and cross‑strait tensions even though India’s economy remains much larger by GDP.