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What is SGX Nifty and why is it important?

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Singapore Nifty or SGX Nifty is the Indian Nifty that is traded on the Singapore Stock Exchange.

What is Nifty?

Nifty is a sample of 50 companies of the index market listed on the National Stock Exchange 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 NSE is the leading stock exchange in India, located in Mumbai.

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

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 predict the performance of the Indian Nifty. SGX Nifty also provides investors, who are unable to participate in Indian stock trading due to time variations, exposure to the Indian markets.

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

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.



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