What is GIFT Nifty? Meaning, Timings, Benefits & Transition from SGX Nifty
GIFT Nifty is a futures contract based on the Nifty 50 index, traded on the NSE International Exchange (NSE IX) located in GIFT City, Gujarat, India. Formerly known as SGX Nifty, which traded on the Singapore Exchange, GIFT Nifty now operates in India. In this comprehensive blog post, we will explain what GIFT Nifty is, its benefits, trading hours, and the major shift from SGX Nifty to GIFT City.
What is GIFT Nifty?
GIFT Nifty is a USD-denominated derivative instrument linked to the Nifty 50 index. It allows global investors to trade in Indian market assets at extended hours, making it more accessible to different time zones. The contracts are settled in USD and are listed on NSE IX, India’s first international exchange.
Transition from SGX Nifty to GIFT Nifty
Until July 2023, SGX Nifty was actively traded on the Singapore Exchange. However, starting 3rd July 2023, all SGX Nifty contracts were migrated to GIFT City’s NSE IX as a result of a collaboration between NSE and SGX. This strategic move brought offshore Nifty trading back to India, aiming to boost domestic financial infrastructure and market transparency.
GIFT Nifty Trading Hours
Unlike the Indian stock market's limited trading hours, GIFT Nifty offers nearly 21 hours of trading split into two sessions:
- Session 1: 6:30 AM – 3:40 PM IST
- Session 2: 4:35 PM – 2:45 AM IST (next day)
This allows investors from Europe, the Middle East, the US, and Asia to trade according to their time zones.
Benefits of GIFT Nifty
- Global Accessibility: Long trading hours enable participation across global time zones.
- USD-Denominated: Eliminates the need for currency conversion, making transactions easier for foreign investors.
- High Liquidity: A unified liquidity pool enhances efficient price discovery.
- Regulatory Framework: Operates under India’s SEBI and IFSC regulations, ensuring transparency.
- Market Sentiment Indicator: GIFT Nifty reflects overnight market sentiment and sets the tone for Indian markets.
GIFT Nifty vs Nifty 50
| Feature | GIFT Nifty | Nifty 50 |
|---|---|---|
| Trading Platform | NSE IX (GIFT City) | NSE (India) |
| Currency | USD | INR |
| Trading Hours | 21 Hours | 6.25 Hours |
| Type | Futures | Index |
Relevant Keywords
- GIFT Nifty
- SGX Nifty
- GIFT City Exchange
- Nifty 50 Futures
- Trading hours of GIFT Nifty
- Indian financial market
- NSE International Exchange
- Benefits of GIFT Nifty
Frequently Asked Questions (FAQs)
Q1: Is GIFT Nifty the same as Nifty 50?
No. Nifty 50 is a benchmark stock index of India's top 50 companies. GIFT Nifty is a futures contract based on the Nifty 50 index.
Q2: How can I trade in GIFT Nifty?
You can trade GIFT Nifty through brokers registered with NSE IX in GIFT City. An international trading account may be required.
Q3: Can retail investors participate in GIFT Nifty?
Yes, retail investors can participate via approved brokers who support access to NSE IX and the GIFT Nifty contracts.
Conclusion
GIFT Nifty represents India’s effort to bring offshore Nifty trading within its borders and create a global financial hub through GIFT City. With longer trading hours, dollar-denominated contracts, and robust regulatory backing, it is a promising platform for global and domestic investors. Whether you’re an institutional trader or an individual looking to diversify, GIFT Nifty offers a modern and strategic way to trade in India’s equity markets.
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