What is Gift Nifty? What is SGX Nifty Today?
GIFT Nifty is a derivative product acting as an indicator for NSE's benchmark index, the NIFTY 50 in the stock market.
by P Nandhini
Updated Jul 29, 2024
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What is Gift Nifty?
GIFT Nifty is a financial index that tracks the performance of India's top 50 companies listed on the National Stock Exchange (NSE). It is a rebranded version of the SGX Nifty and is now traded on the NSE International Exchange in GIFT City, Gujarat.
GIFT Nifty is a derivative product of the Indian stock market, acting as an indicator for NSE's benchmark index, the NIFTY 50.
It was introduced on July 3, 2023, as a rebranded version of the SGX Nifty, which was previously traded on the Singapore Exchange. The index allows investors to trade in Indian stock market movements from an international platform but in US dollars.
By moving trading from Singapore to India, GIFT Nifty aims to boost trading volume and liquidity in the Indian market, making it more accessible for both local and global investors.
What is SGX Nifty Today?
The GIFT Nifty is currently at 25,044.50, up by 77.50 points or 0.31% for the day. This update was last recorded on July 29, 2024, at 11:03 AM.
What is Gift Nifty Full Form?
GIFT Nifty stands for Gujarat International Finance Tec-City Nifty. The name reflects its connection to GIFT City, a special financial district in Gujarat, India. This index measures the performance of the top 50 companies listed on the National Stock Exchange (NSE) and is traded on the NSE's international platform.
GIFT City is designed to be a global financial hub, and GIFT Nifty helps investors around the world trade in Indian market movements from this new international exchange.
Benefits of Trading GIFT Nifty
Trading GIFT Nifty offers several benefits:
- Extended Trading Hours: GIFT Nifty is available for trading nearly 21 hours a day, making it easier for investors in different time zones to participate.
- Closer to the Indian Market: It reflects the performance of the Nifty 50 index, which is a key indicator of the Indian stock market, so local investors can engage with the market more directly.
- Improved Liquidity: Trading within GIFT City helps create a more liquid market for Nifty derivatives, potentially leading to better trading conditions.
- Cost-Effective: It can be less expensive for traders compared to previous arrangements, as it avoids some fees and charges associated with foreign exchanges.
- Tax Incentives: Investors might benefit from tax incentives offered in GIFT City, making it financially attractive for trading.
What Are the Differences Between SGX Nifty and GIFT Nifty?
Here’s a table highlighting the differences between SGX Nifty and GIFT Nifty:
Feature |
SGX Nifty |
GIFT Nifty |
|---|---|---|
| Full Form | Singapore Exchange Nifty | Gujarat International Finance Tec-City Nifty |
| Trading Location | Traded on Singapore Exchange (SGX) | Traded on NSE International Exchange in GIFT City, Gujarat |
| Currency | Traded in Singapore dollars | Traded in US dollars |
| Regulation | Regulated by Singapore Exchange Regulation | Regulated by the International Financial Services Centres Authority (IFSCA) |
| Market Access | Provides indirect access to Indian markets | Direct access to Indian market through NSE |
| Trading Hours | Standard trading hours based on Singapore time | Extended trading hours, nearly 21 hours a day |
| Liquidity | Focused on international investors, with significant volume in Singapore | Aims to consolidate trading volume within India for improved liquidity |
| Taxation | Subject to Singaporean tax rules | May benefit from tax incentives in GIFT City |
| Purpose | Facilitates foreign investment in Indian markets | Enhances India’s global financial hub status and attracts more direct investment |
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