Business · Markets · 13 hrs ago
Nifty trails Asian markets as AI chip shares lift Korea and Taiwan
India’s Nifty 50 has fallen 10.6% over the past year, leaving it near the bottom among 18 major markets.
South Korea’s Kospi and Taiwan’s Taiex rose sharply as demand for artificial intelligence boosted chip companies such as Samsung Electronics, SK Hynix and Taiwan Semiconductor Manufacturing Company.
By contrast, many of India’s biggest listed companies lost value, even as profits in the Indian companies tracked rose about 6%.
A war involving Iran has disrupted shipping through the Strait of Hormuz and pushed oil prices higher.
India imports at least 88.7% of its crude, so costly oil has added pressure to the rupee and Indian shares.
Foreign investors withdrew a record ₹1.14 trillion from Indian equities in March, and the Reserve Bank of India raised its key rate by 25 basis points to 5.5% in response to economic pressures.
The rupee would need to recover for foreign investor money to return, according to an investor quoted in the story.
The Nifty 50 fell 10.6 per cent over the past year, ranking second-last among 18 major markets, according to Bloomberg data cited by Business Standard.
South Korea’s Kospi rose 86.7 per cent and Taiwan’s Taiex gained 80.6 per cent over the same period.
Demand for artificial intelligence chips helped lift shares in Korea and Taiwan, including those of major chipmakers.
India’s 10 most valuable companies returned close to minus 20 per cent, while aggregate profits of Indian firms in the sample rose about 6 per cent.
Higher oil prices, foreign investor outflows and a weaker rupee added pressure on Indian equities.
- Who
- Indian equities, compared with markets in South Korea, Taiwan and other countries.
- What
- The Nifty 50 lagged major global markets over the past year as chip-related shares lifted Korea and Taiwan.
- When
- Over the past year, according to the article published on October 11, 2026.
- Where
- India, South Korea and Taiwan, among other markets.
- Why
- Korea and Taiwan benefited from the AI chip boom, while higher oil prices, foreign investor outflows and a weaker rupee weighed on India.
This story does not have two clearly opposing sides.
The biggest worry for India is that the global oil price is up, and the rupee also depreciated. Hence, the impact has doubled. The rupee has to start recovering, and only then will the FII money come
The article’s comparison says ₹100 invested in the Nifty would be worth about ₹90 two years later.
A trade deal cut US tariffs on Indian goods to 18 per cent from 50 per cent.
US and Israeli strikes on Iran triggered a war that the article says choked shipping through the Strait of Hormuz.
Foreign investors pulled a record ₹1.14 trillion from Indian equities.
The Reserve Bank of India raised the repo rate by 25 basis points to 5.5 per cent.
The Nifty closed at 22,520.45, down 10.6 per cent from a year earlier.
- Nifty 50
- Closed at 22,520.45 on Friday
- Nifty 50 annual change
- Down 10.6 per cent
- Kospi annual change
- Up 86.7 per cent
- Taiex annual change
- Up 80.6 per cent
- March foreign investor outflows
- ₹1.14 trillion
- Indian listed companies’ value
- $3.67 trillion
Sources
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