What is SGX Nifty India and its impacts on Indian Stock Market?

What is SGX Nifty India and its impacts on Indian Stock Market?

In recent years, buying stocks to increase wealth has grown more widespread and well-liked. The necessity to comprehend all the keywords associated with the share market has grown along with the number of persons interested in investing in stocks. You will frequently run into the phrase "Nifty" when reading financial news in a newspaper or online news source. These news reports frequently discuss how this platform's points are rising and falling. 

So, precisely what is this Nifty? The National Stock Exchange, or NSE, an Indian stock exchange platform, introduces the Nifty, a subset of 50 firms from the index market from various economic sectors. Knowing that each nation has unique stock exchange platforms can help you better grasp this platform. Nifty is India's stock market platform, which lets investors understand how a firm performs on a daily basis before making a significant investment. 

However, there is another name that most people confuse with Nifty. It's called SGX Nifty. But first, let's spend a little more time getting to know the name "Nifty" before understanding the meaning of SGX nifty. 

Describe Nifty

The NSE indices own and operate Nifty, which was introduced on April 22nd, 1996. As noted, Nifty is an index for the Indian Stock Exchange (NSE) platform. To inform investors about the performance of the firms on the stock market, it represents 50 of the major companies in India and gives their weighted average. It is one of India's two primary stock exchange indices and the BSE SENSEX.

Nifty ranks the firms in a rating system that keeps the company doing the best at the top and lists the companies according to their stock market performance. Nifty surveys the top listed businesses to provide investors with information about which business has the potential to do well in the future so they can make the best investment decisions and maximise their profits.

We may now turn our attention to the subject for which we came to this site— What is SGX Nifty —since we have a fundamental understanding of what nifty is.

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Table of Content

  1. Describe Nifty
  2. What is SGX Nifty?
  3. What Distinguishes the SGX Nifty from the Indian Nifty?
  4. How is the Indian Market affected by SGX Nifty?
  5. Benefits of the SGX Nifty
  6. Shortcomings of Trading in SGX Nifty 
  7. New Developments
  8. Conclusion

What is SGX Nifty?

SGX Nifty is a derivative of the Nifty index traded via the Singapore Stock Exchange platform. This deal establishes a predefined price for a share and lowers the risk associated with any future investments. 

The SGX nifty is the futures trade nifty in Singapore, where the share price is preset, and the buyer and seller have to commit to that pre-decided price regardless of any future changes that may occur in the stock market. This will help you understand it better. The Indian Nifty trades on the NSE, the Indian stock exchange platform.

Given that the Singapore Stock Exchange is the leading stock exchange in India, SGX nifty significantly contributes to the functioning of the Indian stock market by helping to anticipate and monitor the behaviour of the Indian Nifty.

What Distinguishes the SGX Nifty from the Indian Nifty?

The main distinction between the SGX Nifty and the Indian Nifty is that the former trades exclusively on the National Stock Exchange, or NSE, the Indian stock exchange platform, while the latter only trades on the SGX Nifty, a futures trade platform in Singapore, where the prices of stocks are predetermined to avoid future risk.

Another important difference between the SGX Nifty and the Indian Nifty is the contract size. In contrast to the SGX nifty, an Indian Nifty contract between a buyer and a seller must include a minimum of 75 shares. As a result, unlike any Indian nifty, the SGX nifty does not have a contract with shares.

As the busiest and only trading platform operating twenty-four hours a day in Singapore, SGX Nifty has significant client and trade activity levels. With the Indian Nifty, a national trading platform, this is unquestionably not the case. These SGX nifty characteristics raise its profitability.

How is the Indian Market affected by SGX Nifty?

As we've already mentioned, the SGX Nifty helps anticipate and watch the behaviour of the Indian Nifty. The Singapore market opens around 2.5 hours before the Indian market, therefore, there is also a time difference between the Indian Nifty and the SGX Nifty. 

This enables investors to monitor the SGX nifty to understand market swings and see how the trading process is progressing. Investors may determine if the Indian market will open positively or negatively by keeping an eye on this. 

The results these investors receive are not always precise and depend on the many economic elements in both nations, even though it may be a quick approach to assess the Indian market and balance your possibilities. Due to the stark differences in these two nations' economic systems—India and Singapore—the market behaviour is affected in various yet noticeable ways.

You cannot discuss one without bringing up the other since the conduct of the Indian Nifty and SGX Nifty is somewhat influenced by one another. Nifty and SGX Nifty, as well as many other financial terms that are regularly used and play important roles in the stock market, are essential for anybody who wants to enter the stock market and start trading like a pro.

Benefits of the SGX Nifty

Increases the number of international investors investing in the Indian derivative market. India and Singapore are geographically close to one another, guaranteeing faster connection and fewer time delays between the two exchanges. Investors without access to Indian markets might use it as a decent substitute, especially if they want to conduct business in US dollars. 

The SGX Nifty's extended business hours provide transactions more power, particularly regarding hedge funds. Market players' ability to make decisions is improved by the 16-hour window, enabling them to base their assessments of the Indian markets on overnight events on Wall Street.

Shortcomings of Trading in SGX Nifty 

In response to global political upheaval and economic cycles, the SGX Nifty is more erratic than the NSE Nifty. Trading in SGX Nifty contracts is forbidden for citizens of India. The difference between the SGX Nifty and the NSE Nifty has six a half-hour opportunities to trade between 9:15 AM and 3:30 PM. 

On the other hand, the Singapore Stock Exchange's SGX Nifty is open from 6:30 AM to 11:30 PM IST, trading for 16 hours daily. The SGX's extended trading hours ensure significant world events' effect on the companies traded there is more pronounced. In addition, traders turn to the SGX Nifty futures rather than the NSE Nifty when making quick decisions.

New Developments

To operationalise "NSE IFSC-SGX Connect," which would bring Gujarat's worldwide Finance Tec-City (GIFT) players and worldwide participants together to build a larger liquidity pool for Nifty products in the GIFT City, the NSE and SIGX have a contractual partnership with Nifty Products. 

The SEBI wants to take several protectionist steps against the potential of foreign exchanges setting prices for the India Market and the expanding market share of SGX in response to the decision by SGX to provide single stock futures.


Overall, both platforms are equally important since they make it easier to comprehend how each other behaves when the markets open. Knowing about these two platforms may be very useful for traders, investors, or anybody who wants to trade or seek a profession in trading. Dealing with money is a risky game, and the existence of a market for skilled financial market gamblers is both exhilarating and terrifying. Knowing the market before entering it will thus only be helpful. 

And what better approach to comprehend a market than to be familiar with both the local market (in this example, the Indian Nifty) and one of the largest global trading platforms? Additionally, traders may easily access their demat accounts with blinkX's app. Trading is hassle-free thanks to the platform's user-friendly interface and convenient execution speed.

SGX Nifty FAQs

Two sessions are offered: 6:30 am to 3:40 pm and the other from 4:35 pm to 2:45 am.

It is a derivatives contract on the NSE's Nifty index that trades from a few hours before the opening of the Indian market to the early hours of India time.

The fundamental distinction between the SGX Nifty and the Indian Nifty is that the former only trades on the NSE, the Indian stock exchange. At the same time, the latter is a futures trading platform in Singapore.

The opening direction of the Indian stock market can be influenced by SGX Nifty futures, which can give an early indicator of market mood.

Yes, investors from India may trade SGX Nifty futures. But it's crucial to remember that trading SGX Nifty futures is constrained by rules and regulations established by Indian authorities, such as the Securities and Exchange Board of India.