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25 Nov 2015
What's SGX Nifty? SGX or Singapore Exchange is probably the leading stock exchange in Asia, movement on which somehow reflects in other stock indices within the continent. SGX Nifty is Singapore Stock trading game Nifty which implies the Indian CNX Nifty traded in Singapore exchange. It is extremely popular derivative product of Singapore Exchange mainly because it allows foreign investors to consider position in Indian Market.
sgx nifty live

In Singapore Exchange, Indian stocks cannot be traded but It allows future models like SGX Nifty Futures. As a result it is the derivative product of Singapore Exchange facilitating futures trading of underlying NSE Nifty index. Its allows FII's and also other individuals to invest in Nifty Futures. Since trading is performed for NSE Index, Singapore Nifty is Settled on the basis of the closing tariff of NSE Index price (S&P CNX Nifty). Trading Timings - There are two types of Contracts in SGX with different settlement periods -

1. E - SGX QUEST (T) With Settlement within the same day, Timings- Mon-Fri - 9.00AM-6.15 PM

2. E* - SGX QUEST (T+1) With Settlement after some day, Timings- Mon-Fri- 7.15PM-1AM

These two contracts have different trading timings which helps traders all over the world to swap SGX even if the market is closed. FII's put money into Indian future contracts through SGX Nifty and India is 2.5 hours behind Singapore. SGX opens at 9.00 AM in Singapore i.e. 6.30 as per IST. Thus by tracking Singapore Nifty, we can easily predict the initial direction of Indian Stock market.

Difference Between Singapore Nifty and NSE Index (S&P CNX Nifty)-

SGX-Nifty product is denominated in dollars which provides foreign traders or investors direct currency protection whenever they use SGX products for hedging. While in case of Nifty Futures, an overseas investor has to combine position on Nifty Futures having a position on the doller-rupee forward market.
sgx nifty chart

Foreign Investors needs to go through variety of complexities to gain access to Indian Nifty to ensure the dollar rupee forward market. The Margins at SGX items are lower than that of NSE.

How SGX- Nifty Affect Indian Stock Market-

Singapore market open around 2 hour before Indian market and directly relates to NSE market. It moves with respect to the Indian Nifty hence used as a tol to predict the Indian market providing initial direction towards the Indian market. Moreover both India and Singapore fall from the same continent which co-related both market and one usually decides the sentiments with the other market. For this reason it becomes easy for Indian advisory and banking institutions to give trading suggestions about SGX Nifty.


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