Categories: Stocks

SGX Nifty

SGX is the Singapore Stock Exchange and Nifty is the benchmark index for the National Stock Exchange or NSE in India. Together they make the SGX Nifty which is a widely used platform for trading futures of Nifty on Singapore Stock Exchange. Thus, SGX Nifty trade gives any global trader (whether individual or institutional) an opportunity to trade in top 50 stocks of Nifty through Nifty Futures contract. Since the price is pre-decided in this trade, the future risk is reduced.

Who can invest in SGX Nifty

Foreign Portfolio Investors and such foreign investors who want exposure to Indian markets, but cannot directly participate, can trade through SGX Nifty.

Impact of SGX Nifty on Indian Markets

SGX is an important stock exchange in Asia and its trading volumes are quite high. There is a difference of 2.5 hrs between Singapore and IST. Therefore, the prices in SGX Nifty are used to predict Indian Nifty’s price movements, before trade opens in India at 9:15 AM IST.
It is also an indicator of the country’s economy in the long-term.

Benefits of SGX Nifty

1. Traders get hedging opportunities by trading before Indian markets open and even after 3:30 PM when Indian markets close.
2. SGX Nifty provides a 16 hour time window for trading every day as it is open from 6 AM to 11.30 PM, while Indian Stock markets are open from 9.15 AM to 3.30 PM only.

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