GIFT Nifty is a groundbreaking development in India’s financial landscape, serving as a bridge between domestic markets and global investors. It represents the international version of India’s popular Nifty 50 index, allowing global traders to participate in Indian equity derivatives from a world-class financial hub — the Gujarat International Finance Tec-City (GIFT City).
Before GIFT Nifty came into existence, international investors traded Indian index futures through SGX Nifty, which was listed on the Singapore Exchange (SGX). The SGX Nifty provided a way for global traders to speculate on or hedge their exposure to Indian markets without directly trading on Indian exchanges. However, to consolidate offshore trading activity within India’s jurisdiction, the National Stock Exchange (NSE) and SGX collaborated to transition these derivative contracts from Singapore to GIFT City.
This transition marked a significant milestone, officially completed in July 2023, when SGX Nifty was rebranded and migrated to GIFT Nifty, now traded on the NSE International Exchange (NSE IX). This move not only strengthened India’s position as a global financial center but also allowed the country to capture trading revenues and data that were previously managed overseas.
GIFT Nifty operates nearly 21 hours a day, overlapping with key global market sessions such as Asia, Europe, and North America. This extended trading window offers foreign investors real-time access to Indian market movements, making it a reliable indicator of how the Indian stock market may perform when it opens.
In conclusion, GIFT Nifty represents India’s growing integration with global financial markets. By replacing SGX Nifty, it has created a seamless, transparent, and efficient platform for global investors to participate in India’s economic growth while positioning GIFT City as a premier international trading destination.
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