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Why is Taiwan share market rising?
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The biggest reason behind Taiwan’s rise is the strong performance of Taiwan Semiconductor Manufacturing Company. The company alone contributes around 42% of Taiwan’s benchmark stock index, highlighting its dominance in the market. TSMC shares have surged nearly 49% this year due to rising global demand for artificial intelligence (AI). The company is one of the biggest players in the semiconductor industry and plays a key role in manufacturing AI chips used worldwide.
Why is Indian stock market under pressure?
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Despite strong domestic economic growth, the Indian stock market has faced heavy pressure this year. Investors have become cautious due to multiple global and domestic concerns. Foreign investors are shifting money from relatively expensive markets like India to Taiwan and South Korea, where they are getting direct exposure to AI and semiconductor growth themes. This trend has weakened investor sentiment in Indian equities.
Foreign investors pulled out billions
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Foreign Institutional Investors (FIIs) have sold nearly USD 24 billion worth of Indian equities this year. Continuous selling by global funds has affected market momentum and reduced India’s attractiveness among emerging markets. At the same time, rising crude oil and energy prices because of Iran-US geopolitical tensions have increased concerns over India’s inflation and economic growth outlook.
First major annual decline
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India’s benchmark stock indices are down around 8% this year. This is expected to be the market’s first annual decline after nearly a decade of consistent gains. Due to weaker market performance, India’s weightage in the MSCI Emerging Markets Index has also fallen sharply from around 19% last year to nearly 12% now.
India still far ahead in economic strength
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Although Taiwan has moved ahead of India in stock market valuation, India remains far larger in terms of economic size. According to International Monetary Fund (IMF) estimates, India’s economy stands at around USD 4.15 trillion, compared to Taiwan’s GDP of about USD 977 billion. This shows that while Taiwan’s stock market is currently benefiting from the global AI boom, India continues to remain one of the world’s largest and fastest-growing economies.
