GIFT Nifty Live

About GIFT Nifty

GIFT Nifty, or Gujarat International Finance Tec-City Nifty, is a derivatives index that tracks the performance of the top 50 companies listed on India's National Stock Exchange. It was launched on July 3, 2023, after the rebranding of the SGX Nifty, originally traded on the Singapore Exchange. The aim was to strengthen India’s position in the global financial arena by consolidating international trade at GIFT City, which is one of the special economic zones of the state of Gujarat.

It is designed for international investors, who trade in the Indian equity market in US dollars. It works like a futures contract, and features two trading sessions. One from 6:30 AM to 3:40 PM IST, and another from 4:35 PM to 2:45 AM IST. The trading window is more than 21 hours and aligns with the global market hours.This makes it easier for foreign investors to participate. They also get a tax waiver as the index is governed by the International Financial Services Centres Authority. However, the regulatory restrictions deny retail investors from India to trade on GIFT Nifty. Overall, GIFT Nifty can be understood as a step towards integrating India in the global financial landscape.

GIFT Nifty Futures

GIFT Nifty is a futures contract based on the Nifty 50 index and traded on the NSE International Exchange in GIFT City, Gujarat.

Key Features of GIFT Nifty Futures:

• Eligibility: GIFT Nifty can be traded by Non-Resident Indians, Foreign Portfolio Investors, and Eligible Foreign Investors. On the other hand, Indian retail investors cannot participate in the trading.

• Trading Sessions: GIFT Nifty features two sessions - the morning session between 6:30 AM to 3:40 PM IST and the evening session between 4:35 PM to 2:45 AM IST. The whole trading clock measures almost 21 hours, so that investors can respond to changes in the global markets.

• Contract Value: The value for the GIFT Nifty futures is derived from the Nifty 50 index, which includes India's top 50 companies on the National Stock Exchange of India.

• Tax Benefits: Tax benefits for trading in GIFT City make it an attractive investment for foreign investors looking to invest in India.

• Leverage and Risk: Futures contracts carry significant leverage by allowing traders to control a larger position with a smaller amount of capital. But understanding market dynamics is crucial as it also entails significant risks.

In a nutshell, GIFT Nifty futures is an opportunity unique to international investors to dabble in India's dynamic stock market as it offers after-hours benefits and regulatory advantages.

What is GIFT Nifty?

GIFT Nifty, short form for Gujarat International Finance Tec-City Nifty, tracks the performance of Nifty 50, which comprises India's 50 largest firms listed on the National Stock Exchange (NSE). Launched on 3 July 2023, it is designed to facilitate trading in a global context from Gujarat's special economic zone GIFT City. The aim is to attract international financial services. This index enables international investors-including NRIs and FPIs to trade Indian stocks in US dollars directly without investing in the Indian market. It operates on the NSE International Exchange and offers extended trading hours - 21 hours each day across two sessions. This allows for quicker reactions to global market movements.

GIFT Nifty is derived from the rebranding of SGX Nifty, which used to trade on the Singapore Exchange. The move is meant to consolidate trading volume within India and strengthen India's place as a global financial hub. While GIFT Nifty provides an opportunity for foreign investors, it is barred for Indian retail investors due to regulatory caps. On a whole, GIFT Nifty is a strategic step to bring the Indian economy closer to international financial markets by offering additional perks of tax exemptions to foreign investors. This makes it an attractive option for investors looking to trade in India’s growing economy.

GIFT Nifty Timings

GIFT Nifty trades are open for extended hours, making it accessible for international investors. There are two sessions a day.

Session 1 runs from 6:30 am to 3:40 pm IST. In this session, futures contracts based on the Nifty 50 index comprising the top 50 companies listed on the National Stock Exchange of India can be purchased and sold.

Session 2 opens at 4:35 PM and goes on till 2:45 AM IST the next day. The overnight trading session will enable investors to respond to some overseas markets, especially in the U.S. and Europe.

Overall, GIFT Nifty trades for about 21 hours every day, whereas the old SGX Nifty traded for ~16 hours. More hours of trading offer more hours of contact and more opportunity to respond to the rising and falling sentiments in the market.

This time structure allows for trading across time zones and participation by more number of foreign investors. Moreover, the overlap of trading hours makes trading possible in major global markets, and promotes liquidity and price discovery.

The aim is to attract a larger foreign investment into the Indian financial markets along with providing a robust trading platform for derivatives linked to NIFTY 50.

Difference between SGX Nifty and GIFT Nifty

GIFT Nifty was formerly known as SGX Nifty. Tt was rebranded and transitioned to NSE IFSC, an international exchange located in GIFT City, Gandhinagar, Gujarat.

• Trading Location: SGX Nifty was traded on the Singapore Exchange and exposed international investors to the Indian market, but indirectly. On the other hand, GIFT Nifty is traded on the NSE International Exchange at GIFT City, Gujarat, India and trading activities are consolidated within India.

• Trading Hours: SGX Nifty ran almost 16 hours a day between 6:30 AM IST and 10:30 PM IST; whereas GIFT Nifty offers extended trading hours, totaling nearly 21 hours in two sessions. The first one is from 6:30 AM to 3:40 IST and the next session is from 4:35 PM to 2:45 AM IST. Such a longer trading window helps investors have ample time to react to the shifting global market scenario.

• Regulatory environment: SGX Nifty was regulated by Singapore Exchange regulations whereas GIFT Nifty falls under the purview of the International Financial Services Centres Authority (IFSCA) of India. The aim is to tighten regulation and offer a robust platform for trading.

• Accessibility: While the GIFT Nifty is primarily designed for international investors - the NRI and the FPIs, SGX Nifty permitted broader global participation.

GIFT Nifty is a strategic move to improve the financial infrastructure of India and provide more opportunity for effective trading.