What is SGX Nifty and How It Impacts Indian Stock Market?

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What is SGX Nifty?

SGX is abbreviation of Singapore stock exchange. SGX is derivative of Nifty Index trade officially in Singapore stock exchange. All the shares of the Nifty are not traded here. It is Major competitor product of Nifty futures. The transactions of this are settle in Singapore Stock Exchange.

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Nifty Futures on the SGX is trade for 16 hours on the exchange while Nifty trades just for 6 and half hours on the National stock exchange Market in India. The Investors who are not able to access Indian Markets they trade in SGX Nifty and take the exposure of Indian Stock Market.

SGX Nifty How It Impacts Indian Stock Market ?

There is global effect of share trading on the Sensex and Nifty. This is due to India and Singapore located in the same continent. The impact is seen on the stock prices due to the performance or the change in the economy of one country. There is continuous trading doing after the globalization.

SGX Nifty moves with the respect to the Indian nifty. The SGX Nifty opens at 8 Am daily and gives direction of the Indian Stock Market.

When it’s about the volatility then Singapore Nifty is more volatile then the Indian NIFTY. The reason behind this is various factors that have influence on its volatility. The time difference causes the SGX to open before NSE but since most of the traders wait for the NSE trading before they trade on SGX Nifty which has little effect on the NSE.

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The stock market performance is mostly dependent on the news of the days and the International Market performance plays vital role in how the NSE performs each day.
SGX nifty and its impact on Indian stock market is seen through the trend. The trend is the first indication of the direction of the movement of the Indian stock exchange. Indian market opens at 9 15 am but there is pre- opening session at 9 am. The Indian stock trading closes at 3 30 PM. Whereas the SGX is available to Trade between 6:30 am to 11:30 Pm as per the Indian time. So, it allows the investors to trade more even the Indian Markets are close.
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KEY POINTS ABOUT SGX NIFTY:

  • Singapore Nifty (SGX Nifty) is the Indian Nifty that is traded in Singapore Stock Exchange.
  • It is the first indication of initial direction of Indian stock exchange.
  • SGX Nifty is available 6:30 AM to 11:30 PM as per Indian time.
  • The margin at SGX is lower than those of NSE.
  • SGX nifty suggest foreign investors to invest in NIFTY Futures.

The SGX Nifty takes sign from the Indian Nifty, and the Indian Nifty also takes signal from domestic factors, global economic factors, political news and others. So in reality, SGX Nifty has little to no affect on how the NSE performs during the day.

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