What is Gift Nifty?

What is Gift Nifty?

Have you ever heard about Gift Nifty? Well, if you are already familiar with trading, investment, and all concepts then you must hear about Gift Nifty. But if you are not familiar with this concept as you are a newbie or fresher. Then don't worry we will discuss here all such information such as What is Gift Nifty. Let’s know this concept in detail.

Quick Introduction

This GIFT NIFTY is formerly known as SGK NIFTY. It is a futures-based contract on the Nifty 50 index of the National Stock Exchange of India (NSE). It is a financial index that serves as an indicator of the Indian Stock Market. And this index began trading under its new name on 3rd July 2021.

In simple words, it will be maintained by so-called Indian index moves. This will help you to easily find out how the Indian market will be today. This index serves as a benchmark for tracking the performance of the companies. And offers that are in the overall market trends within the framework of GIFT City. 

The Investor and market participants can leverage the GIFT  NIFTY. Where they understand the dynamics and the development of the financial hub, and make informed investment decisions. 

Operating during regular market hours they follow the NIFTY index trading timing. It enables the assessment of the company's performance within GIFT City, which facilitates informed investment decisions.

How does it work?

Well, in the Singapore Market, which directly affects the NSE market, which opens before the two hours at the Indian Market. There are moves in relation to the Indian Nifty, making this a useful tool for forecasting the Indian Market and giving it a Head Start.

In addition, Singapore and India share the same continent. And the links with their economics and determines frequently how each market feels. So this makes it very simple for the Indian Financial and advisory organizations that are offering the trade's advice on the NIFTY.

What is the difference between SGX NIFTY and GIFT NIFTY

Let’s here are some differences between the SGX NIFTY and GIFT NIFTY indexes in given below table:

Trading Location As it refers to the nifty index future that is traded on the Singapore Exchange. But in this case, this represents the Nifty index future that is traded on the Gujrat International Finance Tech (GIFT) City exchange in India.
Market Accessibility It allows global investors to trade the NIFTY index not only even when the Indian market is closed and allows for 24-hour trading. It operates within Indian trading hours, and it provides domestic investors with a platform to trade the NIFTY index future directly.
Regulatory Environment It operates under the regulation and the oversight of the Singapore exchange regulation. It operates with the Securities and Exchange Board of India (SEBI) and also follows Indian regulations and guidelines.
Trading Hours  16 hours 21 hours
Timings 6:30 AM to 11:30 PM  Indian Standard Time  6:30 AM to 3:40 pm  Indian Standard Time  and 4:35 PM to 2:45 AM  Indian Standard Time 

How to trade gift nifty in India

The NRI can trade in GIFT NIFTY through the broker. But those who are the members of the National Stock Exchange of India IX. First, you will need to open a trading account with the broker. And then you have to deposit the fund before you start trading.

Well, it’s not permitted for Indian residents. It means the Indian citizen does not have any permit to trade in the GIFT NIFTY. Only foreign portfolio investors (FPIs) and NRIs are allowed to trade in this GIFT NIFTY. 

Benefits of Trading in Gift Nifty

There are various benefits, which are given below in the bulletin points:

  • A single pool of liquidity, where the GIFT NIFTY will be traded on the single pool of liquidity. It helps to improve the price discovery and also reduces the transaction costs.
  • Extended trading hours, where the GIFT NIFTY will be traded for nearly 21 hours per day. This overlaps the trading hours in The United States, Asia, and Europe. And that gives more trades and flexibility and opportunities to trade.
  • Regulatory Certainty, where the GIFT NIFTY will be traded under the regulatory framework of the International Financial Service Centres Authority  (IFSCA), this provides consists of the 25 largest IT companies in India.

Trade timing in Gift Nifty

Well, the best trade time in the new GIFT NIFTY F&O contract is between two sessions which have 21 hours of trading days. So the first sessions would be 9 hours long, from 6:30 AM Indian Standard Time to 3:40 PM in Indian Standard Time (IST). 

In the second session after the 55-minute break, 12 hours of the day will begin at 4:35 PM Indian Standard Time and continue till 2:45 AM Indian Standard Time the next day. On the other hand, SGX NIFTY was open for trade for the daily 16 hours between 6:60 AM to 11:30 PM Indian Standard Time.

Final Words

Thus, We have already seen that GIFT NIFTY offers a unique opportunity for investors to access the Indian market through an international finance center.  So we have mentioned all the details regarding the GIFT NIFTY, its benefits, and how it works. If you are finding a secure platform for foreign investment then INDmoney Vs Vested is the best choice.

We have tried to mention all the single details on this blog to provide you with correct information in simple language that is easy to understand. We hope our blog on “What is GIFT NIFTY?” is informative. And hope this helps you to know the new and different terms related to the NISM course.

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