SGX Nifty Transformed into GIFT Nifty: Timings, Data Access, and Key Modifications Explained
In a notable development, the Singapore Exchange (SGX) Nifty futures contracts, valued at $7.5 billion, have been successfully transitioned to the NSE International Exchange (NSE IX) located in Gandhinagar, Gujarat. Effective from July 3rd, these derivative instruments have been rebranded as GIFT Nifty.
Over the years, the SGX Nifty has established itself as a reliable early indicator of the potential opening direction of the Nifty index on a given trading day. Traders have traditionally relied on the SGX Nifty as one of the primary sources of information to assess market sentiment and anticipate the initial market movements before the official opening of the Nifty at 9:15 am.
According to Ashish Chauhan, the Managing Director and CEO of the National Stock Exchange (NSE), the transition of SGX Nifty trading to the NSE International Exchange (NSE IX) in Gandhinagar, Gujarat has addressed concerns and brought about a sense of awe among market participants. Chauhan described the process as a previously imagined science-fiction-like activity that has now become a reality, emphasizing the seamless matching of orders within GIFT City.
What is Gift Nifty?
GIFT Nifty, the rebranded version of SGX Nifty, represents the transition of open positions in SGX Nifty to the NSE International Exchange (NSE IX) located in the Gift City Special Economic Zone (SEZ) in Gujarat, India. As of the effective date, US dollar-denominated contracts of Nifty futures are now traded on the NSE IX platform, operating under the regulatory oversight of the International Financial Services Centre Authority (IFSCA).
The shift to GIFT Nifty signifies a transfer of trading activities and positions from the Singapore Exchange to the NSE IX in Gift City. This move brings the trading of Nifty futures contracts closer to the Indian market, providing investors with an opportunity to trade and hedge their positions within India’s regulatory framework. By facilitating trading in US dollar-denominated contracts onshore, GIFT Nifty aims to attract international participants, enhance liquidity, and bolster the development of the Gift City SEZ as a global financial hub.
What About SGX Nifty?
Following the transition of open positions to the NSE International Exchange (NSE IX) in the Gift City SEZ, SGX Nifty has been suspended for trading. The delisting of SGX Nifty from the Singapore Exchange (SGX) is expected to take place in due course.
What Are Gift Nifty’s Hours?
Gift Nifty provides extended trading hours that overlap with various international trading sessions, enabling market participants to react to global market events and news. The trading timings for Gift Nifty consist of two sessions, offering extensive availability for investors and traders. The timings for each session are as follows:
First Session:
Start Time: 6:30 am IST
End Time: 3:40 pm IST
Second Session:
Start Time: 4:35 pm IST
End Time: 2:45 am IST (next day)
The first session of Gift Nifty begins early in the morning and concludes in the afternoon, providing access to traders during the Asian trading hours. The second session commences in the late afternoon, extending into the night, allowing for participation during European and US trading hours.
These extended trading hours facilitate greater flexibility for market participants, enabling them to adjust their trading strategies and manage positions based on global market developments and news flow. It also provides international investors with an opportunity to trade Gift Nifty during their respective time zones, further enhancing the accessibility and attractiveness of the Indian derivative market.
How Can I Check Gift Nifty Figures?
To check Gift Nifty figures, you can follow these steps:
- Open your web browser and visit the NSE IX website.
- Once on the NSE IX website, navigate to the section dedicated to Gift Nifty or Nifty Futures.
- Look for a tab or link that provides access to the live market data or real-time figures of Gift Nifty.
- Click on the tab or link to access the Gift Nifty figures.
- On the Gift Nifty page, you should be able to view the current value of Gift Nifty, including the index level, price, volume, and other relevant market data.
- Additionally, you may find charts, historical data, and other tools that provide insights into the performance and trends of Gift Nifty.
It is worth noting that the specific location or navigation may vary on the NSE IX website, so it is recommended to explore the website’s sections related to Gift Nifty or Nifty Futures to find the most up-to-date figures. Alternatively, you can also utilize financial news portals or financial data providers that offer real-time market data to access Gift Nifty figures.
How Does This Change Benefit Investment?
The shift of Gift Nifty trading to the NSE International Exchange (NSE IX) within the Gift City Special Economic Zone (SEZ) in Gujarat offers several benefits to investors. Some of the key advantages are:
Tax Exemptions: Operating within an SEZ, NSE IX provides investors with exemptions from various taxes, including Securities Transaction Tax (STT), commodity transaction tax, dividend distribution tax, and capital gains tax. These tax waivers can significantly reduce the overall tax burden on investors, enhancing their profitability and investment returns.
Cost Efficiency: By availing tax exemptions, investors can save on transaction costs associated with taxes, thereby improving cost efficiency in their trading activities. This can be particularly beneficial for high-frequency traders, institutional investors, and market participants with significant trading volumes.
Attraction of International Investors: The tax benefits and regulatory framework offered by NSE IX within the Gift City SEZ can attract international investors seeking exposure to Indian markets. The waivers on various taxes make it more appealing for foreign investors to participate in Gift Nifty trading, promoting foreign investments and increasing liquidity in the Indian market.
Competitive Trading Environment: The establishment of NSE IX within the Gift City SEZ aims to create a globally competitive trading environment. By providing tax exemptions, the exchange encourages greater participation from market participants, leading to increased liquidity, improved price discovery, and a more robust and vibrant marketplace.
Access to International Markets: The extended trading hours of NSE IX, which overlap with Asian, European, and US trading hours, offer Indian investors the opportunity to access and react to global market events. This access to international markets can enable investors to diversify their portfolios and take advantage of global trends and opportunities.
Development of Gift City as a Financial Hub: The shift of Gift Nifty trading to NSE IX further establishes the Gift City SEZ as an international financial hub. The tax exemptions and regulatory advantages create a conducive ecosystem for financial services, attracting domestic and international financial institutions, bolstering economic growth, and generating employment opportunities.
Overall, the shift of Gift Nifty to NSE IX in the Gift City SEZ benefits investors by providing tax exemptions, cost efficiency, attracting international investors, fostering a competitive trading environment, facilitating access to international markets, and contributing to the development of Gift City as a prominent financial hub.
According to V Balasubramaniam, the CEO of NSE International Exchange (NSE IX), the shift of Gift Nifty trading to NSE IX within the Gift City SEZ provides significant advantages for non-resident players. He highlights that entities from India that establish subsidiaries within the Gift City SEZ are treated as non-residents and also benefit from tax exemptions.
What is the Impact for Retail Traders and Investors?
The migration of Gift Nifty trading from SGX to NSE IX primarily impacts institutional investors and market participants, including foreign investors and entities operating within the Gift City SEZ. For retail traders and investors, the impact is relatively minimal as it primarily involves a shift from one stock exchange to another.
Can Retail Traders Deal With Gifty Nifty Contracts?
Retail traders, operating as individuals, are not permitted to trade in leveraged Gifty Nifty contracts under the Liberalised Remittance Scheme (LRS) route. The LRS is a framework introduced by the Reserve Bank of India (RBI) that allows resident individuals to remit a certain amount of money abroad for various purposes, including investment in securities and derivatives.
What Additional Contracts Would Be Available on Gift Nifty?
In addition to Gift Nifty50, the NSE International Exchange (NSE IX) will offer several other derivative contracts under the Gift Nifty framework. These include:
Gift Nifty Bank: This contract is based on the performance of the banking sector within the Nifty Index. It allows investors to trade and hedge their positions specifically on the banking stocks included in the Nifty Index.
Gift Nifty Financial Services: This contract focuses on the financial services sector within the Nifty Index. It enables investors to take positions and manage risk related to financial services companies listed in the Nifty Index.
Gift Nifty IT: This contract is based on the performance of the information technology (IT) sector within the Nifty Index. It allows investors to participate in the IT sector’s performance and manage their exposure to IT companies included in the Nifty Index.
It’s important to note that these are just a few examples of the derivative contracts available under Gift Nifty on NSE IX. The exchange may introduce additional derivative contracts covering various sectors, themes, or specific indices in the future, gradually expanding the range of options available to market participants.
