SGX Nifty

All you need to know about SGX Nifty.

· 3 min read
SGX Nifty

SGX Nifty

SGX Nifty stands for Singapore Stock Exchange NIFTY, which allows people to take positions in the Singapore Exchanges on future contracts of NIFTY (National Stock Exchange fifty) which is traded on the National Stock Exchange of India. Settlements of the futures contracts are based on the NIFTY settlement price in the Indian Stock Exchange.

This Index helps foreign investors to invest in Indian markets without registering with the authorities of India. Even the hedge funds who have high exposure to Indian markets can hedge their positions using SGX Nifty. SGX Nifty is traded for more than 16 hours in a day, so it also gives the idea to Indian traders and investors, where the Indian market can be on the next day.

Here in this article, we are going to understand what SGX Nifty is. How are contracts traded and what is the trading time of SGX Nifty?, also how SGX Nifty is helpful for Indian traders.

What is SGX Nifty?

SGX Nifty is the derivative product of Nifty futures. SGX stands for Singapore Stock Exchange and Nifty is the benchmark index of the National Stock Exchange of India, NIFTY 50 is the weighted average of the top 50 companies of India working in different sectors.

SGX Nifty is the index in Singapore that allows foreign Individual Investors to invest in Indian companies without registering with the authorities. Singapore Stock Exchange allows the investors to invest in other countries similarly, countries like China, Hong Kong, Taiwan, etc.

What is the Timing to trade in SGX Nifty?

SGX Nifty is traded for more than 20 hours a day on Singapore Exchange. It is traded between 6:30 a.m to 2:45 a.m IST in two sessions. The first morning (T) session is between 6:30 a.m to 3:40 p.m IST and the evening session (T+1) is between 4:10 p.m to 2:45 a.m IST. But trades that happen in the morning session are settled on the same day but if a trade is executed in the evening session then it is settled on T+1 that is the next day.

Indian Markets opens at 9:15 a.m and closes at 3:30 p.m. SGX Nifty is one of the indicators for the Indian traders to know in which direction the market can move and they can use their strategies to make profits. During current times we encounter much global news which can affect the markets immediately and SGX Nifty being traded for more than 20 hours in a day gives us an instant idea of how the Indian market can react.

How are contracts traded on SGX Nifty?

In India contract size of futures of nifty is a lot of 75 shares whereas contract size in SGX Nifty is not based on the number of shares but based on the value. It is denominated based on dollars. If the current index of nifty derivative is 5000 than contract size will be $ 2*(5000) = $ 10,000.

For example, if there is a change in the price of the Nifty futures index by Rs 50 then Indian investors can have a profit/loss of Rs 50*75 = Rs 3750. Whereas, a person who invested in SGX will make a profit/loss of $ 2* 50 = $ 100 for each contract.

SGX Nifty has monthly as well as quarterly contracts. The contract ends on the last Thursday of the expiry month. If there is a holiday in India last Thursday, then it ends on the preceding business day.

SGX Nifty is highly Liquid as Indian Markets. SGX Nifty helps to predict Indian traders in which direction NIFTY can move on the next day. Location of Singapore and India within the Asian continent, due to that we have less time-lapse and better connectivity between the exchanges.

Closing thoughts

Here in this article, we discussed what SGX nifty is and the lot size and timing to trade SGX Nifty. Some of the key features of SGX Nifty are mentioned below

  • International Benchmark of Indian markets.
  • No requirements of approved FII’s.
  • Extended Trading Hours.

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