South Korea’s stock market has overtaken India to become the sixth largest market in the world. The main reason for this is the big chip manufacturing companies, which are continuously making records on the basis of increasing use of Artificial Intelligence (AI). According to Bloomberg, this year the total market cap of South Korea’s listed companies has increased by 86% to reach 5 trillion dollars (about Rs 475 lakh crore). At the same time, the market cap of the Indian stock market has decreased to 4.8 trillion dollars (about Rs 456 lakh crore). Market cap of American stock market is 78 trillion Source: Bloomberg 3 main reasons for lagging behind the Indian market. Experts have given three big reasons behind the Indian stock market slipping one place in the world: In terms of economy, India is still more than twice the size of South Korea. Even though South Korea has overtaken India in terms of stock market valuation (market cap), but in terms of the size of the country’s economy (GDP), India is still Far ahead of South Korea. According to International Monetary Fund (IMF) estimates, India’s economy is worth $4.15 trillion ($4.15 trillion) and is one of the fastest growing major economies in the world. At the same time, South Korea’s GDP is only 1.93 trillion dollars ($1.93 trillion), which is less than half that of India. What is market cap? ‘Market capitalization’ of the stock market of any country means the total value of shares of all the listed companies there. If the market cap of a country is increasing, it means that the confidence of investors in the companies there is increasing.
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Indian stock market left behind by South Korea: market cap increased to ₹ 475 lakh crore due to rise in AI, value of India to ₹ 456 lakh crore
