SGX Nifty

SGX Nifty, traded on the Singapore Exchange, tracks India’s Nifty index. It allows global investors to trade early and is priced in SGD, while Nifty uses INR.
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SGX Nifty
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3 mins read
17-December-2025

The stock market moves every day, and investors rely on various indicators to anticipate future trends. One such indicator is SGX Nifty, now known as Gift Nifty, which offers a preview of market direction before trading begins in India. Although traded outside the country, it mirrors the performance of Nifty 50 companies. Both global and Indian traders track it closely to plan their positions, manage potential risks, and make better decisions. As a result, it serves as a helpful guide for estimating how the Indian stock market may open each day.

What is SGX Nifty?

SGX Nifty was a futures contract linked to India’s Nifty 50 index and was earlier traded on the Singapore Exchange. It allowed traders to take positions based on the expected future value of the Nifty 50, which represents the fifty largest companies listed on the National Stock Exchange of India. This offered global investors an opportunity to participate in Indian market movements without trading directly within India.

Following regulatory developments, SGX Nifty was moved to India’s GIFT City and renamed Gift Nifty. It now trades on the NSE International Exchange for nearly sixteen hours a day, giving investors across the world more flexibility to monitor and trade based on Indian market trends. This transition reflects how the product, once associated with the Singapore Exchange, has become an important part of India’s international financial ecosystem.

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How does SGX Nifty work?

SGX Nifty operates in two separate sessions and remains active for nearly 16 hours each day. It mirrors the NSE Nifty index and settles based on its closing value, providing two varieties of futures contracts with distinct timings and durations.

  • Same-day session: Trades from morning to evening and settles on the same day.

  • Next-day session: Trades in the evening and settles the following day.

SGX Nifty operates between 6:30 AM and 11:30 PM IST, offering a much longer trading window than Indian markets. It provides early indications before the NSE opens and continues to trade after it closes. Since it is traded in Singapore Dollars, it assists global investors with currency exposure and supports more efficient price discovery.

How does SGX Nifty work?

The functioning of SGX Nifty is linked to India’s Nifty 50 index, which represents the fifty largest companies listed on the NSE. It is a futures contract that allows traders to take a long position when they expect the index to rise or take a short position if they anticipate a decline. This structure enables investors to either speculate on market direction or hedge their portfolios without directly purchasing Indian equities.

SGX Nifty begins trading roughly two hours before the Indian market opens, making its movement a useful early signal of possible market behaviour at the NSE’s opening. This gives traders, institutions, and global investors helpful insights to plan their strategies and manage risks more effectively.

SGX Nifty trading

SGX Nifty refers to the Nifty 50 index futures traded on the Singapore Exchange (SGX). It allows international investors to take positions on Indian equities without accessing Indian markets directly. A key advantage is its extended trading window SGX Nifty timings span nearly 16 hours, starting at 6:30 AM IST and running till 11:30 PM IST. This overlaps with both Asian and European market hours, offering greater flexibility for global traders. It also acts as a sentiment indicator for Indian markets before they open, aiding in pre-market analysis.

How is SGX Nifty different from Indian Nifty?

Let us explore some key differences between SGX Nifty and Indian Nifty:

Aspect

SGX Nifty

Indian Nifty

Trading Exchange

Singapore Stock Exchange

National Stock Exchange (NSE)

Nature

Futures contract based on Nifty

Benchmark index of top 50 Indian companies

Trading Hours

6:30 AM to 11:30 PM IST

9:15 AM to 3:30 PM IST

Denomination

Singapore Dollars (SGD)

Indian Rupees (INR)

Influencing Factors

Global market sentiment

Indian economy, policies, earnings

Market Information

Provides a future direction

Real-time market movements

How does SGX Nifty impact the Indian market?

SGX Nifty offers global investors an early glimpse into potential movements in the Indian stock market before domestic trading begins. Since it is traded in Singapore Dollars (SGD), unlike the Indian Nifty which is traded in Indian Rupees (INR), currency fluctuations can also play a role. While SGX Nifty often sets the tone for market sentiment in India, its movements do not always mirror the Nifty index due to varying global influences that may impact trading activity on the Singapore Exchange.

1. Time difference and early indication:

  • The time difference between the opening of the Singapore market and the Indian market provides a valuable early indication of market sentiment. Singapore markets open about two and a half hours before the Indian market.

  • Investors and traders use the SGX Nifty as a leading indicator to gauge the potential direction of the Indian market when it opens. Fluctuations in the SGX Nifty can provide insights into how the Indian Nifty might behave later in the day.

2. Pre-market trading and reaction to global cues:

  • SGX Nifty allows for pre-market trading, providing an avenue for investors to react to global cues and news that may impact the Indian market.

  • As global events and economic factors affect financial markets worldwide, including India, the SGX Nifty can reflect how international developments may influence investor sentiment in the Indian market.

3. Risk management and hedging:

  • Investors, especially those skeptical about the Indian market, may use SGX Nifty as a tool for risk management and hedging strategies. They can take positions in the SGX Nifty to offset potential risks in the Indian market.

  • It provides a way for investors to participate in the Nifty movement without directly engaging in the Indian market, offering a level of flexibility and risk mitigation.

4. Global economic structure differences:

  • The reference content rightly points out that India and Singapore have different economic structures. Economic events and policies in both countries can impact their respective markets differently.

  • Investors need to consider the broader economic factors in both nations when interpreting SGX Nifty movements and making decisions based on them.

5. Interconnected behaviour of Nifty and SGX Nifty:

  • The behaviour of the Indian Nifty and SGX Nifty is interconnected. Movements in one market can influence the other, creating a symbiotic relationship between the two.

Traders and investors cannot overlook either market when analysing market behaviour and making investment decisions.

Impact and trading hours of SGX Nifty

The Singapore Exchange (SGX) operates for 21 hours daily, from 6:30 AM to 3:40 PM and 4:35 PM to 2:45 AM, facilitating significant overlap with trading hours in Europe, Asia, and the Americas. This extended market exposure can influence global economic cycles. The SGX platform provides valuable trading information and enables investors to effectively plan hedging strategies.

Advantages of SGX Nifty

SGX Nifty offers several strategic benefits for global investors looking to trade Indian equity futures more efficiently. Here are some key advantages:

  • Extended trading hours: Operates for nearly 16 hours a day, allowing flexibility across global time zones.

  • Early market indication: Acts as a predictive tool for Indian market trends before domestic markets open.

  • Foreign currency exposure: Enables trading in Singapore Dollars (SGD), helping manage currency diversification.

  • Efficient hedging: Allows investors to manage portfolio risks by anticipating market fluctuations.

Disadvantages of SGX Nifty

While SGX Nifty offers many benefits, it also has certain limitations that investors should consider:

  • No direct investment in Indian stocks: SGX Nifty allows trading only in futures, not in actual Indian equities.

  • Possible deviation from Nifty 50: Its movements may not always align with the Nifty 50 index due to different global market influences.

  • Lack of access to domestic cues: Traders may miss key India-specific developments that affect market trends.

Conclusion

Gift Nifty, previously known as SGX Nifty, is a futures contract that mirrors India’s Nifty 50 index and provides early insight into market direction before trading begins on the NSE. It also offers sector-based indexes such as the Singapore Bank Nifty, giving global investors exposure to Indian equities without needing direct access to Indian exchanges. Its extended trading window adds flexibility and helps traders react to global developments in real time. However, regulatory updates and market changes can influence how it operates, so staying informed is essential for effective decision making.

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Frequently asked questions

What is SGX Nifty?

SGX Nifty is a futures contract that tracks India’s Nifty 50 index and trades on the Singapore Exchange. It helps global investors gauge expected market direction before the NSE opens and allows indirect participation in Indian equity movements.

In which currency the trades are performed in SGX Nifty?

SGX Nifty is a futures contract linked to India’s Nifty 50 index, traded on the Singapore Exchange. While the Indian Nifty 50 operates in Indian Rupees (INR), SGX Nifty transactions are conducted in Singapore Dollars (SGD).

What is the trade time of SGX Nifty (GIFT Nifty)?

GIFT Nifty futures are available for trading in two sessions based on Indian Standard Time (IST). The first session runs from 6:30 AM to 3:40 PM, followed by the second session from 4:35 PM to 2:45 AM.

What is the difference between Nifty and SGX Nifty?

Both indices reflect the performance of the Nifty 50, but they are traded on different exchanges. Nifty 50 is the benchmark index of the National Stock Exchange (NSE) in India, whereas SGX Nifty is its futures counterpart, traded on the Singapore Exchange, enabling global investors to gain exposure to Indian market movements.

Can Indians trade in SGX Nifty?

Yes, Indians can trade SGX Nifty through brokers registered with the Singapore Exchange. However, currency fluctuations and regulations add complexity. It is advisable to understand the risks involved before trading.

Why does SGX Nifty affect the Indian market?

SGX Nifty affects the Indian market because it begins trading before Indian markets open, incorporating global cues and sentiment. As a result, it serves as a pre-market indicator, reflecting investor expectations and influencing early trading decisions in India.

How is SGX Nifty calculated?

The SGX Nifty, being a futures contract, has a derivative contract size calculated by multiplying the current price of the Nifty Index futures by a multiplier of US $2. This results in an approximate contract size of US $11,000, assuming a futures price of $5,500.

What is the new name of SGX Nifty?

SGX Nifty has been rebranded as GIFT Nifty. It is now traded on the NSE International Exchange (NSE IX) located in GIFT City, Gandhinagar, Gujarat, following the The new name of SGX Nifty is GIFT Nifty. The contract was renamed after shifting from the Singapore Exchange to India’s GIFT City, where it now trades on the NSE International Exchange as part of India’s global market framework.transition from the Singapore Exchange in 2023.

Is SGX Nifty a good indicator?

Yes, SGX Nifty can be a useful indicator because it trades ahead of Indian market hours, reflects global investor sentiment and often foreshadows opening trends of the Nifty 50.

Can Indians trade in SGX Nifty?

Indian retail investors are not permitted to trade directly in SGX Nifty due to regulatory restrictions. However, foreign investors and institutions can access SGX Nifty contracts through the Singapore Exchange, making it a popular option for global exposure to Indian equity indices.

Can Indians trade in SGX Nifty?

Indian retail investors are not permitted to trade directly in SGX Nifty due to regulatory restrictions. However, foreign investors and institutions can access SGX Nifty contracts through the Singapore Exchange, making it a popular option for global exposure to Indian equity indices.

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