GIFT NIFTY

25,676.00
-34.00 (0.13%) 1D
Last updated at 05:06 PM

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About GIFT NIFTY

Gift Nifty is a US-dollar-denominated derivative futures contract based on India’s flagship equity index, Nifty 50, and listed on the NSE International Exchange (NSE IX). It was launched on July 3, 2023, by the National Stock Exchange of India (NSE) via the International Financial Services Centre (IFSC) at GIFT City, Gujarat. Under a connectivity arrangement between the Singapore Exchange (SGX) and NSE, Gift Nifty replaced the earlier offshore derivative contract known as SGX Nifty (which was traded on the Singapore Exchange). The Nifty 50 derivatives are based on the Nifty 50 Index as the underlying benchmark. The contracts are settled in U.S. Dollars ($) and are traded on the NSE International Exchange (NSE IX) located in GIFT City, Gujarat, India. Trading occurs in two sessions: Session I runs from 6: 30 AM to 3: 40 PM (IST), followed by a break from 3: 40 PM to 4: 35 PM (IST), and Session II continues from 4: 35 PM to 2: 45 AM (IST) the next day. These instruments are primarily designed for non-resident, global, and institutional investors, while Indian resident retail investors are restricted from participating.Gift Nifty provides global investors with a way to participate in India’s equity market derivatives while minimizing constraints such as currency risk, time zone differences, and regulatory barriers. Operating for nearly 21 hours and covering Asian, European, and U.S. trading sessions, it acts as a key indicator of how Indian markets might open, with traders using its movement to gauge Nifty’s pre-market behavior. Additionally, it enables India to consolidate a larger portion of Nifty-based derivatives trading within its own regulatory framework in GIFT City (IFSC), reducing dependence on foreign exchanges.;

SGX Nifty/GIFT Nifty

GIFT Nifty is one of the most closely tracked global indicators for the Indian stock market. Earlier known as SGX Nifty, it represents derivative contracts based on the Nifty 50 index and is widely used by traders to anticipate how Indian markets may open.

Because GIFT Nifty trades beyond regular Indian market hours, it reflects overnight global cues, US market performance, and international investor sentiment, making it a key reference point for traders across Asia.

What is GIFT 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.

It allows global investors to trade Nifty-linked contracts outside the regular NSE trading hours. Essentially, GIFT Nifty mirrors expectations about how the Indian equity market—specifically the Nifty 50—will perform.

It is now the official offshore derivative contract linked to the Nifty 50.

What Was SGX Nifty?

Before GIFT Nifty, Nifty 50 derivative contracts were traded on the Singapore Exchange (SGX) under the name SGX Nifty.

SGX Nifty:

  • Was popular among foreign investors

  • Acted as a pre-market indicator for Indian markets

  • Reflected global sentiment towards Indian equities

However, to bring offshore trading activity under Indian regulatory control, SGX Nifty was transitioned to GIFT City.

Transition from SGX Nifty to GIFT Nifty

The shift from SGX Nifty to GIFT Nifty was part of India’s broader effort to:

  • Develop GIFT City as an international financial hub

  • Bring offshore Nifty trading back under Indian jurisdiction

  • Strengthen regulatory oversight

After the transition, Nifty futures contracts previously traded in Singapore began trading on the NSE International Exchange (NSE IX) as GIFT Nifty.

Transition from SGX Nifty to GIFT Nifty

The shift from SGX Nifty to GIFT Nifty was part of India’s broader effort to:

  • Develop GIFT City as an international financial hub

  • Bring offshore Nifty trading back under Indian jurisdiction

  • Strengthen regulatory oversight

After the transition, Nifty futures contracts previously traded in Singapore began trading on the NSE International Exchange (NSE IX) as GIFT Nifty.

GIFT Nifty Trading Hours

One of the biggest advantages of GIFT Nifty is its extended trading hours.

  • Trades nearly 24 hours a day, five days a week

  • Operates in multiple sessions

  • Continues trading when Indian markets are closed

In contrast, NSE operates from 9:15 AM to 3:30 PM IST.

This extended window makes GIFT Nifty a powerful tool for tracking global sentiment before the Indian market opens.

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