The SGX Nifty, a popular early indicator of the Indian stock market, is shifting base from the Singapore Exchange to the NSE International Exchange (NSE IX) in Gujarat’s Gandhinagar. The move, which is being dubbed a “Ghar Wapsi” (return to home) for the index, is part of the Indian government’s efforts to attract foreign investment and boost the development of the Gujarat International Finance Tec-City (GIFT City).
Under the new arrangement, all SGX Nifty positions will be converted to Gift Nifty positions over the weekend. The entire Open Interest (OI) in SGX Nifty of around $7 billion will also shift to Gift Nifty. The daily volumes are around $1.5-2 billion.
Gift Nifty Timing will be accessible for almost 21 hours, which overlaps Asia, Europe, and US trading hours. It would be open in two sessions – from 6.30 am to 3.40 pm in the morning and then again from 4.35 pm to 2.45 am in the second session.
Based out of GIFT City SEZ, investors will get exemptions from STT, commodity transaction tax, dividend distribution tax, and capital gain tax waivers. This makes it much more advantageous for non-resident players.
From a trader and investor’s perspective, nothing will change as it would be just a migration from one stock exchange to another. The trading timings and the trading hours will remain the same.
Moreover, the move to shift SGX Nifty to NSE IX is a significant step in the development of GIFT City and the Indian financial markets. It is expected to attract more foreign investment and boost the liquidity of the Indian stock market.
Imp Note: Track Gift Nifty Live Price, Global Market data and FII DII Today Activity to setup for your Intraday/next day trading plan. Also track Global Events like RBI Repo Rate, US Inflation and India WPI inflation to setup your positional trades.