The Singapore Exchange Limited is referred to by the abbreviation SGX. It is an investment holding company based in Singapore that provides services related to trading and others in Singapore Stock Exchange. The top 50 businesses listed on the NSE make up SGX Nifty, the benchmark index of the Indian National Stock Exchange (NSE). Overall, we may conclude that SGX Nifty India is the Indian Nifty trading on the Singapore Stock Exchange. It is a futures contract that is actively traded on the Singapore NIFTY.
Who may trade on the SGX Nifty Future?
Individual residents living in India are not allowed to do any trading in SGX Nifty Future.
Only foreign portfolio investors and others are allowed. NRI Indians are allowed to trade in SGX Nifty Singapore.
For any investor who wants to trade Nifty but cannot access the Indian Markets, trading SGX Nifty is a viable option. In addition, even large hedge funds with significant exposure to the Indian market view SGX Nifty as a viable alternative for hedging their positions. Further, the SGX nifty 50 futures chart is used to track the latest price changes.
SGX Nifty Opening Time
While Nifty trades on the NSE for 6.5 hours from 9:00 AM - 3:30 PM, SGX Nifty Future trades for 06:30 AM - 3:45 PM (IST) or 09:00 AM - 06:15 PM (SGT) and the 2nd session for 4:40 PM - 2:45 AM (IST) or for 06:40 PM - 04:45 AM (SGT) hours long window of operations. This indicates that SGX Nifty Futures are traded before and after the Indian markets open. The trading is scheduled for Monday to Friday.
SGX Nifty Future may track global trends even when Indian markets are closed for trading because of their extended trading hours. Since the Singapore market starts 2.5 hours earlier than the Indian market, at 6.30 AM (IST), and is directly linked to the NSE market; the SGX Nifty trend can be used to predict the initial direction of the Indian stock exchange. As a result, many traders utilize it to forecast the movement of the Indian stock market. Depending on the movement of the SGX Nifty, the Indian stock market allows intraday traders to hold either long or short positions.
Benefits of the SGX Nifty Index
Investors without access to Indian markets can use it as a decent cover to conduct any business in American dollars. With SGX Nifty's extended business hours, more foreign investors are entering the Indian derivatives market. The geographic proximity between India and Singapore ensures speedier connectivity and shorter lag times between the two exchanges. Extended trading hours on the SGX Nifty give transactions more clout, especially regarding hedge funds. The 16-hour window helps market participants make judgments and allows them to base their evaluations of the Indian markets on overnight events on Wall Street.
What distinguishes the Nifty from the SGX Nifty?
1. The Nifty futures contract is traded on the Singapore Exchange, and the NSE in India.
2. SGX Nifty's contract size is different from Nifty's. In India, each Nifty contract lot contains 75 shares, whereas there isn't a contract with shares in the SGX Nifty. Dollars are used to determine the value of the SGX Nifty.
3. Currently, we define Open Interest in India as the "number of shares" outstanding for the Nifty. The Open Interest, however, displays the 'number of contracts special in the case of SGX Nifty. This is because both the Nifty and the SGX Nifty are incredibly liquid, and there is much activity.
