SGX Nifty Transforms Into Gift Nifty, Here Is All You Need To Know

The Indian stock market is witnessing a significant transformation as the popular SGX Nifty is set to become the Gift Nifty with effect from today i.e July 3. This shift marks a momentous development in the country's financial landscape, promising increased accessibility and enhanced trading opportunities for investors.

For many years, SGX Nifty has served as an early signal of how Nifty is likely to open on a particular day and was frequently the first item traders used to check in the morning before Nifty begins trading at 9:15 am.

What is Gift Nifty?

The Gift Nifty has emerged as a rebranded version of the SGX Nifty, with all existing positions in the SGX being transferred to the NSE IX, effective from today. In this transition, the Nifty futures contracts denominated in US dollars, which were previously traded on the Singapore Exchange, will now find their trading platform on the NSE IX located in the GIFT City SEZ. The NSE IX operates under the regulatory framework of the International Financial Services Center Authority (IFSCA).

Importance of transformation

• The government's goal of making GIFT City a centre for Indian and international financial and IT enterprises has been advanced with this move from the Singapore Exchange to the NSE IX.

• The change is anticipated to increase the revenue of Indian bourses in the current fiscal year due to the moving of derivative contracts brought on by the partnership between SGX and Nifty.

• SGX Nifty currently operates for 16 hours, from 6:30 am IST to 10:30 pm IST. The GIFT Nifty, on the other hand, had its operating hours moved from 4 am IST to 2 am IST the following morning.

• Prior to July 3, the SGX Nifty was considered an early indicator for dictating the Indian market.

What happened to SGX Nifty?

The trading of SGX Nifty has been temporarily halted, and it is slated to be delisted from the Singapore Exchange in due course.

Timings of SGX Nifty

The Gift Nifty will offer extended accessibility for approximately 21 hours, aligning with trading hours in Asia, Europe, and the United States. It operates in two sessions, with the first session starting at 6:30 am and concluding at 3:40 pm. The second session begins at 4:35 pm and extends until 2:45 am.