SGX Nifty – Definition and Why SGX Nifty is Important?

Those interested in growing their money in the stock market are advised to have a clear understanding of the SGX Nifty and the role it plays in understanding the performance of various company stocks. To understand the SGX Nifty, we must first familiarise ourselves with Nifty and the NSE.

 

What is Nifty?

Nifty is a sample of 50 companies of the index market listed on the National Stock Exchange or NSE. Nifty lists these 50 companies according to the performance of their stocks and ranks the best one at the top.

 

What is the NSE?

The National Stock Exchange of India Limited or NSE is the leading stock exchange of India, located in Mumbai. Here you can check the HSE Holidays List.

See also: How to invest in REIT in India

What is SGX Nifty?

SGX stands for the Singapore Stock Exchange. The Nifty is the National Stock Exchange of India’s benchmark index, which represents the weighted average of the top 50 Indian company stocks in 12 sectors. Also known as Singapore Nifty, SGX Nifty is a derivative of the Indian Nifty index traded on the Singapore stock exchange platform.

 

How SGX Nifty impacts traders in India?

Owing to the time difference between the Indian Nifty and SGX Nifty, the SGX Nifty helps Indian investors understand the general market movement before trading starts in India. Tracking SGX Nifty is important for stock investors, as it serves to predicts the performance of the Indian Nifty. SGX Nifty also provides investors, who are unable to participate in Indian stock trading due to time variations, an exposure to the Indian markets.

Apart from India, SGX Nifty allows investors to participate in trading of FTSE, China A50 index, MSCI Asia, MSCI Hong Kong, MSCI Singapore, MSCI Taiwan and Nikkei 225.

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Nifty and SGX Nifty difference

Platforms: While the Indian Nifty is traded on the NSE, the SGX Nifty trades on the Singapore Stock Exchange.

Contract rule: According to the NSE rules, a contract between a buyer and a seller must have a minimum of 75 shares to trade on Nifty. No such limitation exists for the SGX Nifty.

Trading time: SGX Nifty trades for 16 hours a day while the NSE Nifty trades only for six-and-a-half hours. Singapore is 2:30 hours ahead of India and the SGX Nifty operates from 6:30 am to 11:30 pm, according to Indian time. The Indian bourse opens at 9:15 am and closes at 3:30 pm.

Volatility: SGX Nifty is more volatile than the NSE Nifty.

 

Can an Indian trade in SGX Nifty?

No, Indian residents are not permitted to trade in SGX Nifty contracts. NRIs can trade in SGX Nifty, depending on the rules of the country they live in.

 

FAQs

What is the difference between the Bombay Stock Exchange and Sensex?

The Bombay Stock Exchange is a platform while the Sensex is the stock market index that is traded on this platform.

What is the difference between the National Stock Exchange and Nifty?

The National Stock Exchange is a platform while the Nifty is the stock market index that is traded on this platform.

What is SGX Nifty?

SGX Nifty is a derivative of the Nifty index traded on the Singapore stock exchange platform.