India’s weighting in the MSCI Emerging Markets index is almost back to what it was at the time of the Covid-19 pandemic, falling from second place to fourth place last year, as global outflows have turned to AI-driven markets like Taiwan.
Meanwhile, the South Asian country’s peak came back in September 2020, when India’s weightage declined to about 12% by May 2026, compared to 9% in 2020. This decline has mostly occurred in the BFSI, IT and FMCG verticals, which account for a large share in the global index.
On the other hand, markets like Taiwan and South Korea grew due to strong demand for AI and semiconductor companies like Samsung Electronics and TSMC, which have also been able to expand their global presence.
Meanwhile, financials, consumer staples and IT services continue to dominate the Indian market, while their share in businesses powered by AI hardware or platforms is small.
Since India reached its peak level in 2024, equity market indices Sensex and Nifty 50 have fallen 17.5% and 16% respectively in USD terms. Over the same period, China’s Shanghai Composite has risen 50%, while Taiwan’s market has risen 77% and South Korea’s Kospi has risen 124%.
Since India reached its peak level in 2024, equity market indices Sensex and Nifty 50 have fallen 17.5% and 16% respectively in USD terms. Over the same period, China’s Shanghai Composite has risen 50%, while Taiwan’s market has risen 77% and South Korea’s Kospi has risen 124%.
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