On Monday, Gandhinagar SGX Nifty changed its name to GIFT Nifty, and all derivative contracts worth $7.5 billion were transferred from Singapore to India. The launch of GIFT Nifty officially is a step towards moving the base from Singapore Exchange to Gandhinagar’s NSE International Exchange (NSE IX). The NSE IX held a bell-ringing ceremony for the GIFT NIFTY on Monday to mark this significant occasion and signify the start of trading. An astounding $1.3 billion worth of trading had already occurred before 3:30 p.m.
For the bell-ringing ceremony, Tapan Ray, MD and Group CEO of GIFT City, Ashishkumar Chauhan, MD and CEO of the NSE, Injeti Srinivas, Chairman of the IFSCA, and others gathered in GIFT City. Gujarat’s GIFT City, an up-and-coming financial centre, intends to compete with other major financial hubs like Dubai, Singapore, and Mauritius. Tapan Ray noted the NSE International Exchange’s extended trading hours and the Nifty derivatives’ exclusive trading in US dollars. “This move is expected to attract global investors and accelerate economic growth, solidifying India’s position as a vibrant financial powerhouse,” the official said.
On his social media, Gujarat’s Home Minister Harsh Sanghavi praised the significance of this shift, calling it a “game-changing moment for GIFT City.”
A significant step has been taken towards switching from the Singapore Exchange to NSE IX in Gandhinagar with the transfer of the $7.5 billion trade to GIFT City and the transfer of all open orders. Gift Nifty 50, Gift Nifty Bank, Gift Nifty Financial Services, and Gift Nifty IT derivative contracts are all included under the GIFT NIFTY umbrella brand. This development comes after a five-year conflict between Gujarat’s GIFT City and the National Stock Exchange of India Ltd was resolved. This conflict was of utmost significance for the trading market in India.
SGX Nifty currently has a 16-hour trading window from 6:30 a.m. IST to 10:30 p.m. IST, whilst GIFT Nifty presently operates for a longer duration from 4 a.m. IST to 2 a.m. IST the following day. After this change, SGX will manage the clearing activities while NSE IFSC would serve as the sole trading venue for all Nifty derivatives contracts denominated in US dollars.
Frequently Asked Questions :
Ques: What is GIFT Nifty?
Ans: GIFT Nifty is the rebranded version of the Gandhinagar SGX Nifty, which is an index futures contract of the Singapore Exchange. It represents the performance of the Indian equity market.
Ques: What does GIFT Nifty signify?
Ans: GIFT Nifty signifies the integration of the index futures with GIFT City, a global financial hub in Gujarat, India. It represents the growing prominence and potential of GIFT City as an emerging financial center.
Ques: How can I invest in GIFT Nifty?
Ans: To invest in GIFT Nifty, you can approach registered brokers or financial institutions that offer derivatives trading services. Open an account with a brokerage firm, complete the necessary documentation, and place trades for GIFT Nifty contracts.
Ques: What are the advantages of investing in GIFT Nifty?
Ans: Investing in GIFT Nifty provides exposure to the Indian equity market and allows investors to participate in the growth potential of Indian companies. It also offers diversification opportunities and helps manage risk through derivatives trading.
Ques: How is GIFT Nifty different from other index futures?
Ans: GIFT Nifty is unique as it represents the Indian market within the context of GIFT City, an emerging financial hub. It provides a platform for international investors to access and trade Indian equities.
Ques: What are the factors that can influence GIFT Nifty’s performance?
Ans: GIFT Nifty’s performance can be influenced by various factors such as global economic trends, market sentiment, domestic economic indicators, corporate earnings, and government policies affecting the Indian economy.
GIFT Nifty has emerged as a rising star in the Indian market, offering promising investment opportunities. With its rebranding and integration with GIFT City, it showcases the potential for growth and development in the Indian financial landscape. Investors can explore the offerings of GIFT Nifty and stay ahead of the curve in the dynamic Indian market.
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