Gift Nifty

GIFT Nifty stands for Gujarat International Finance Tec-City Nifty. It is an index fund that mirrors the performance of the top 50 companies listed on the National Stock Exchange of India. Formerly known as the SGX Nifty, GIFT Nifty was rebranded and moved to the NSE International Exchange located in GIFT City, Gandhinagar, Gujarat. The index began trading under its new name on July 3, 2021, and is structured to function with two trading sessions to ensure synchronization with international market hours.

What are the Timings of GIFT Nifty? In sharp contrast to its predecessor, the trading hours for GIFT Nifty Live have already been significantly stretched. It has a 21-hour-long trading day, bifurcated into two sessions. The first session is from 6:30 a.m. to 3:40 p.m. IST, and the second session continues from 4:35 p.m. to 2:45 a.m. IST the next day. This expanded time frame gives traders far more leeway and many more opportunities to be out in the market.

Benefits of GIFT Nifty

Extended Trading Hours: One of the standout advantages of the GIFT Nifty is its extended trading hours. Unlike the SGX Nifty operates for about 16 hours a day and offers nearly 21 hours of trading. The extra time ensures that traders can respond to the global market changes promptly. The GIFT Nifty Index can easily integrate into the major financial centers of Asia, Europe, and the US.

Single Liquidity Pool: The GIFT Nifty benefits from a unified liquidity pool. This integration brings together trading activities into a single dynamic pool for enhanced market efficiency. With pooling liquidity, GIFT Nifty Index supports better price discovery and lowers market frictions. Holders in-turn get more accurate pricing and a cost-effective trading ecosystem.

Regulatory Certainty: IFSCA as the regulator for the GIFT Nifty is known for providing stringent regulatory observation. Their comprehensive guidelines on disclosure, trading practices, and risk management ensure a transparent and secure trading environment. Such regulatory assurance extends the market confidence in the GIFT Nifty Index and even lessens the possibility of manipulations or fraudulent practices.

Enhanced Market Access: Located in GIFT City, the GIFT Nifty provides improved access for international investors. Its integration with global financial systems makes it easier for investors to participate in the Indian market. This enhanced accessibility promotes greater liquidity and potentially more competitive pricing for the GIFT Nifty Index.

Difference between SGX Nifty Live and GIFT Nifty Live

Despite being essentially a rebranding of SGX Nifty, GIFT Nifty has some significant distinctions. GIFT Nifty Live operates on the NSE International Exchange, situated in GIFT City, Gujarat, replacing its previous location. Its trading day was also extended to 21 hours, in contrast to SGX Nifty's 16-hour trading day. This longer period of time aligns one with the hours of the global market and provides additional trading chances.

In addition, the regulatory framework under the IFSCA is far more stable and safe than it is under the new SGX arrangement. Global investors are thus promised a more trustworthy and transparent trading platform as a result of this legislative change.

As a result, the GIFT Nifty is a significant improvement as compared to the SGX Nifty. It offers traders and investors a unified liquidity pool, extended hours, and a strong regulatory structure. It is considerably more accessible and connected to international financial markets thanks to its new operations headquarters in GIFT City, making it an important instrument for anyone working with Indian market futures.