Gift Nifty

Gift Nifty, formerly known as SGX Nifty, is a derivative contract linked to India's Nifty 50 index, originally traded on the Singapore Stock Exchange (SGX). The relocation of Gift Nifty to the NSE International Exchange (NSE IX) in Gandhinagar, India, signifies a significant shift in the landscape of trade in Indian financial markets.

Hedge funds and institutional investors utilize Gift Nifty live as a strategic tool to hedge their exposure to the Indian stock market. Additionally, traders actively engage with Gift Nifty to speculate on the future direction of the Nifty 50 index, leveraging its dynamic movements to inform their trading decisions.

The move from the Singapore Exchange to NSE IX encompasses all SGX Nifty live derivative contracts, amounting to an impressive $7.5 billion in trade value. NSE IX, situated in GIFT City, now features four financial products, namely GIFT Nifty 50, GIFT Nifty Financial Services, GIFT Nifty Bank, and GIFT Nifty IT derivative contracts.

Any trading member, whether Indian or foreign, registered or non-registered, with an office through a branch model or subsidiary, can now actively trade in the GIFT NIFTY index products upon acquiring NSE IX membership. However, it's important to note that Indian retail investors won't have exposure to GIFT Nifty products under the Liberalized Remittance Scheme (LRS).

SGX, short for the Singapore Exchange Limited, previously facilitated SGX Nifty trading for 21 hours a day, running from 6:30 a.m. to 11:30 p.m. IST. This stark contrasted with the Indian CNX Nifty's trading hours on the NSE, which spans six and a half hours (9:00 am - 6:10 pm). Gift Nifty share price movements, however, continue both before and after the opening of the Indian markets, potentially following global trends even during non-trading hours in India.

The impact of SGX Nifty on the Indian market is noteworthy, offering a valuable tool for tracking and forecasting movements in the Nifty. The time difference between SGX Nifty and the Indian Nifty provides investors with the advantage of monitoring the former to stay informed about market dynamics, thus gaining insights into the entire trading process.

As of July 3, 2023, SGX Nifty is officially rebranded as Gift Nifty. This transformation marks a substantial move in derivative trade, amounting to $7.5 billion, from the Singapore Exchange to the NSE International Exchange in Gandhinagar, Gujarat. Gift Nifty today stands as a testament to the evolving landscape of trade in Indian financial markets, offering investors new opportunities and avenues for strategic engagement.