The Indian stock market is fundamental to SGX Nifty, also known as Singapore Exchange Nifty. It is a futures and options index that follows the Nifty 50, the benchmark index for India. This blog discusses the significance of the SGX Nifty, how it affects Indian markets, and why traders pay close attention to its movements.
Table of Contents
What exactly is SGX NIFTY? What is SGX NIFTY’s effect on the Nifty 50? What advantages do Singapore Nifty trades offer? How do you use an SGX NIFTY candle stick?
You must have sometimes seen business news anchors or analysts on TV saying that the SGX Nifty is showing a gap up or a gap down today of 10, 50, or 100 points.
Why then do they all say this?
What is SGX Nifty?
Can we trade in SGX Nifty?
Why is SGX Nifty important?
Can we track sgx nifty?
What are the benefits of trading Sgx Nifty?
What effect does SGX Nifty have on the Indian market?
So now, in this article, we’ll address all of your inquiries and also provide clear explanations of everything related to the SGX Nifty.
What is SGX Nifty?
“SGX” and “Nifty” are the two words that make up SGX Nifty. SGX stands for “Singapore Exchange” and “Nifty.” We are aware that it is a benchmark index of India’s top 50 businesses across 12 separate sectors. then if SGX Also known as Singapore Nifty, ‘SGX Nifty’ is created if both Nifty indexes are combined.
The NSE’s derivative product is called “Nifty Future,” just like it is on the Indian Stock Exchange. The same product is also traded on the Singapore Exchange (SGX), where it is known as “SGX Nifty.”
The Indian CNX NIFTY index, which is traded on the Singapore Stock Exchange, is represented by the futures contract known as SGX Nifty. the manner in which Nifty 50 futures are traded on the NSE, the Indian Stock Exchange. The Singapore Stock Exchange allows overseas investors to trade the SGX Nifty in a similar manner.
In Singapore, there are no lots of 75 shares like there are in India, hence if we talk about Nifty Contracts, they are both different in size.
To further understand this, let’s look at a case study:
For example, if the Nifty is trading at 10000, the size of each Singapore Nifty contract will be 20000 US dollars, or 10000 US dollars multiplied by 2.
As a result, each share of Nifty makes Rs. 20 profit when it increases by 20 points and Rs. 20 loss when it decreases by 20 points.
On the Singapore Stock Exchange, however, things work a little differently. If the Nifty increases by one point, you will profit by two dollars on each contract, and if it decreases by one point, you will lose two dollars.
Open Interest: If you look at open interest, it is “Number of shares” in India and “Number of contracts” (rather than “Number of shares”) in Singapore.
Many people say that Singapore Nifty is relatively thinly traded, but this is untrue—SGX Nifty is a highly liquid contract, which is why I am telling you this. When compared to Indian open interest, its open interest is practically equal.
Why is the SGX Nifty traded?
The reason why Nifty is traded on the Singapore Stock Exchange is now in question.
Because there is no need to trade on the Singapore Stock Exchange (SGX) if someone wants to trade the Nifty on the NSE (National Stock Exchange).
In other words, why trade Singapore Nifty when you can trade Nifty futures in India?
To fully understand this, you must first be familiar with the many types of investors;
Investors or traders can broadly be divided into two categories:
#1. OUTSIDE INDIA INVESTORS: Individuals who reside outside of India are the first investors.
You should be aware that no trader or investor may buy or sell derivatives from any country other than his own due to certain international norms and regulations.
As a result, investors from outside of India are unable to trade on the NSE’s Nifty50 index. Because of this, SGX Nifty serves as an useful alternative for them.
#2. Many other investor types are present including foreign institutions. These people have made investments in India.
Since India has a rising economy, mutual funds from many different nations that have a strong portfolio in India have likely invested significant amounts there.
But sometimes things happen that could negatively affect their portfolio. For this reason, foreign mutual fund companies build hedging positions in the SGX Nifty to protect their holdings in India, particularly while the stock market is closed to trading. so that these businesses can significantly reduce losses.
- Portfolio: Your portfolio keeps an accounting of the number of shares you have bought, sold, and how much profit or loss you have made so far. As a result, your trading profile can be thought of as your portfolio.
- When you prepare your portfolio by buying or selling shares in a way that significantly decreases the possibility of loss, you are creating hedging positions.
Now that you are aware of investors, the next logical question is: What are the benefits of trading SGX Nifty futures as opposed to India’s Nifty futures? We should trade in the SGX Nifty, after all.
India and Singapore both have distinct times, with Singapore being two and a half hours ahead of India.
You should be aware that large quantities of money are invested in the stock market by FIIs, or foreign institutional investors. These individuals are from different nations, thus they are unable to invest in the Indian stock market since the timing is inconvenient for them. As an alternative, they trade Indian Nifty future on the Singapore Stock Exchange.
Other than these, there may be many other reasons to trade in SGX Nifty, but the two reasons listed above are the main ones.
How can I track SGX Nifty?
The trading view,Moneycontrol website is the finest resource for tracking the SGX Nifty.
In addition, you can view the SGX Nifty live chart by going to the Singapore Stock Exchange website or, if you prefer, by accessing Investing.com, tradingview etc.
However, tradingview and Moneycontrol’s website will provide the majority of the Sgx Nifty price accuracy information, and only mostly correct data will be displayed.
Now, a few people have questions about what to do if the price of the Singapore Exchange Nifty is different on each website. How can I tell which website is providing the right price?
Can we immediately check the data from the Singapore Stock Exchange in any way?
“Yes” is the response. To look at the Sgx Nifty-, you can also directly access data from the Singapore Stock Exchange.
- You must first visit investing.com’s website. Once there, you must click on the Indices Future option in the menu bar at the top of the page.
- You can view the pricing of Nifty50 by selecting it from the menu on the following page.
Similarly, if you want, you can also see it on Money control:
- You must visit the moneycontrol.com website to do this.
You can access the global market right away from the site by clicking the link that says “View all global markets” just below it.
- The Asian Market portion of SGX Nifty and its price are now visible on the following page.
- You must now check the pricing of investing.com and Moneycontrol.com to discover that there is a small price difference between the two websites.
Whom should we believe and why is there such variations in their prices when there is sometimes very little difference and other times a significant difference?
Let me say that compared to investing.com, moneycontrol.com’s estimates are generally accurate. And the reason I’m stating this is because the investing.com website only updates the SGX Nifty prices till 11:30 p.m.
Trading was restricted at 11:30 p.m. even a few years ago, but the Singapore Exchange later extended its trading hours; however, investing.com never updated their timings. Because of this, this website only refreshes its prices at 11:30.
As a result, the figure you see on the clock before 6:30 am is the figure from the preceding 11:30 pm.
On the other hand, moneycontrol.com displays the precise price at which the SGX Nifty was last traded.
Can you trade SGX Nifty?
Depending on where you live, you may or may not be able to trade Sgx Nifty.
You are not allowed to trade Sgx Nifty if you reside in India. Because certain regulations prohibit trading in derivatives that are traded outside of India.
However, there is a chance that you could trade Sgx Nifty if you are an NRI, or Non Resident Indian, and you reside outside of India. because it all depends on the legal system of the nation in which you live.
What time does the SGX Nifty market open and close?
You should first be aware that India is 2 hours and 30 minutes ahead of Singapore in terms of time. As you are aware that the Indian stock market is only open for more than six hours, from 9:15 am to 3:30 pm. In contrast, the Singapore Stock Exchange is open continuously throughout the day, from 6:30 am to 11:30 pm, or around 16 hours.
In this, trading takes place over two time slots, the first being the “T session” and the second being the “T+1 session,” although there is also a 10-minute pre-opening session from 8:50 to 9:00 am.
As a result, trading on the Singapore Exchange takes place in two stages. The first stage is day trade, sometimes known as T day, which refers to today’s trading. The second transaction, known as Evening transaction or “T+1 day,” occurs in the evening. Since the trade clearly occurs in the evening but is settled in the morning trade the next day, it is known as T+1.
Due to the fact that trading in SGX Nifty goes continuous day and night, SGX Nifty is quite well-known outside of India.
‘Trading Hours’ is what “T” stands for here.
If you’d like, you may also immediately verify the timing by going to the Singapore Stock Exchange’s website;
You must first visit www.sgx.com to do this.
The next step is to select Delayed pricing futures under Derivatives >> Market information.
The SGX Nifty 50 index future may be found on the following page. In addition to the opening and closing prices of the SGX Nifty, you can find many more important information here, including;
Previous close
Day Range of high low
52 week Range of high low
1 year change of high low
contract size of sgx nifty
Tick sizealso can find
Tick value also can find
base symbol also can find
Point value and other information are also visible.
T session (9:00 a.m. to 6:10 p.m.)
According to Singapore’s trading schedule, the market is open from 9:00am to 6:10pm, whic means 6:30am to 3:40pm in Indian time.
The Singapore market closes 10 minutes behind India since the Indian market ends at 3:30 pm. While the stock market in Singapore starts at 6:30am, it does so in India at 9:15am. Therefore, any trading that occurs at the Singapore Stock Exchange between 9:00 am and 6:10 pm is referred to as the “T session.”
T+1 session (6:40 p.m. to 5:15 a.m.)
According to Singapore time, this session continues from 6:40 pm to 5:15 am; meanwhile, in India, it begins at 4:10 pm and closes at 2:45 am. This is due to India being two and a half hours ahead of Singapore in terms of time.
You will find different pricing for the SGX Nifty on both sites since investing.com updates its prices until 11:30pm whereas moneycontrol.com updates its prices only up to 2:45am, or when the Singapore market closes. The prices seen change.
Because of this, Moneycontrol is a better site to use to view Singapore Nifty prices than investing.com.
Why is SGX Nifty important?
Now the issue is, how important is SGX Nifty to you as an Indian trader?
The primary reason SGX Nifty is significant is because, every morning, it provides us with a preview of the market trend and how the Indian market will start for the day.
In other words, Singapore works like the Nifty indicator, from which you can predict if the trend of the stock market will rise or fall today.
Indian traders are ready to act when the market starts if SGX NIFTY shows more gap up or gap down.
We develop our action plan in advance rather than waiting for the market to open at 9:00.
In addition to this, some traders begin monitoring Sgx Nifty as early as the night, but it does not really matter.
What is the difference between SGX Nifty and Nifty?
You are going to learn new information about SGX NIFTY after reading some of the topics listed below, in addition to understanding the difference between Nifty and SGX Nifty.
- The top 50 Indian firms comprise the Nifty index, while the Singapore Nifty, often known as SGX NIFTY, is a derivative product of the Nifty index that is traded on the Singapore Stock Exchange.
- SGX Nifty is the name given to India’s Nifty when it is traded on the Singapore Stock Exchange.
- In comparison to India’s market, which is open from 9:15 am to 3:30 pm India time, the Singapore Stock Exchange is open from 6:30 am to 11:30 night.
- In comparison to Indian Nifty, the SGX Nifty’s margin is very modest.
- When it comes to volatility, both the Singapore Nifty and the Indian Nifty show the similar levels.
- Both have relatively comparable intraday trading.
- When comparing Nifty with Singapore Nifty, the contract size differs. In contrast to SGX NIFTY, where there is no contract lot containing shares, each Nifty contract lot has 50 shares. The Singapore Stock Exchange does not have this restriction, however you must purchase at least 50 shares, or one lot, to trade on the Indian Stock Exchange.
- There are significant variance that our Indian market will open in a positive direction if Singapore Nifty has been trading positively since the morning; conversely, if Singapore Nifty opens in a negative zone, our Nifty may likewise experience a negative opening.
- Visit the NSE website to view the Nifty, and the www.sgxnifty.org website to view the Singapore Nifty.
- In addition to this, you can check it by visiting straight to the websites of the Singapore Stock Exchange or moneycontrol.com.
- Many Indian brokers join the Singapore Stock Exchange exclusively to place their trades in the SGX NIFTY index, which is traded there. Because you must use a broker if you wish to trade on any stock market or with any type of instrument.
- On the Singapore Stock Exchange, NIFTY50 alone accounts for 12% of all derivative trading volume. Nifty50 is extremely well-liked not just in India but also on the Singapore Exchange.
- Nifty future is traded on the Singapore Stock Exchange in a manner similar to how it is done in India.
- If any worldwide news breaks after the Indian stock market has closed, it has a significant influence on the Singapore Nifty and has a similar impact on the Nifty the next day.
- Foreign investors are encouraged by SGX NIFTY to invest in Nifty futures.
- The Singapore Stock Exchange’s market is open for 16 hours compared to the National Stock Exchange’s (6 hours), making SGX slightly more volatile than NSE.
- If there is a big investor, he can hedge the trade in India by trading on the Singapore market since Nifty futures are traded there when the market in India is closed.
FAQ
Can SGX Nifty be traded in India?
“No” Since Indians are prohibited from trading any of their derivatives outside of India, you cannot trade in the SGX Nifty while you are inside of India. However, you can trade in it while you are outside of India.
Why was the Sgx Nifty created?
If we wish to invest money in the NIFTY50 index in India, we can do so through the NSE, however overseas investors cannot directly invest in the NIFTY50 index due to certain restrictions and regulations, but they can do so through the Singapore Stock Exchange. You can invest in and buy shares of Nifty 50 businesses through SGX NIFTY. If observed, SGX NIFTY was developed so that international investors could purchase Nifty 50 shares.
you can read this article’s as well.
Conclusion:
I hope that by now you are aware of what the SGX Nifty is and that in addition to this, you have learned many things about it.
Friends, this post must have been helpful to you if you trade futures and options because SGX Nifty only trades future options; it does not deal in equity.
As a result, please spread this information on social media and leave a comment below if you have any questions.
