How did Taiwan, Seoul overtake India? Drop from 5th to 7th largest stock market - explained
The fall to seventh rank is not just about the rallies in South Korea and Taiwan. It is also about the record exodus of foreign
The fall to seventh rank is not just about the rallies in South Korea and Taiwan. It is also about the record exodus of foreign capital from Indian stock markets. (AI image) At a time of global economic turmoil, why are some global markets like the US, Taiwan and South Korea rallying? Why has the Indian stock market slipped from record highs, giving negative returns over the last few quarters? Why have Taiwan & South Korea stock markets rallied? India’s stock market fall in numbers Let’s understand the fall of Indian stock markets with some numbers BSE Sensex hit a lifetime intra-day high of 86,159.02 on December 1, 2025 after a very volatile year for the most part.
Since then the market is down over 13%, with the fall exacerbated due to the US-Iran conflict since the start of March 2026. hit a lifetime intra-day high of 86,159.02 on December 1, 2025 after a very volatile year for the most part. Since then the market is down over 13%, with the fall exacerbated due to the US-Iran conflict since the start of March 2026. So, while stock markets in the US, Japan, South Korea, and Taiwan are hitting lifetime highs, Indian stock markets, once the favourite of foreign investors among the emerging markets basket, have seen a drop of not just a few percentage points but a double-digit drop.
IT sector stocks have been rallying the world over, with chipmakers seeing strong growth. In India, major IT sector stocks are down over 20%. Foreign portfolio investors have been net sellers in equities in most months this year. In May alone foreign investors were net sellers, withdrawing Rs 32,963 crore from equities. In 2026 so far, the total outflow by foreign portfolio investors from the equity market has hit around Rs 2.3 lakh crore. This is much more than the Rs 1.7 lakh crore selloff seen in the entire of 2025, as per NSDL data. In fact, the cumulative value of foreign portfolio holdings in Indian shares has dropped to its lowest level since 2016, according to NSDL data.
Why have Indian stock markets fallen so much? What’s the outlook? (Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India.)
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