Gujarat International Finance Tech, formerly known as GIFT Nifty, is a derivative of the Nifty 50 index that is traded via NSE IFSC-SGX Connect (“GIFT Connect”) at the International Financial Service Centre (IFSC) in Gandhinagar, India. The trade establishes a share price and lowers the risk associated with any future investments.

Launched by the National Stock Exchange of India (NSE) on July 3, 2023, Gift Nifty is a new index. It is a Nifty 50 index derivative that will be traded on the International Financial Services Centre (IFSC) of the National Stock Exchange (NSE) located in GIFT City, Gujarat.

The fact that Gift Nifty will be traded in US dollars is the primary distinction between it and the Nifty 50 index. This will facilitate trading in the Nifty 50 index for overseas investors and reduce the difficulty for Indian investors to manage their exposure to the Indian rupee.

According to the NSE, trading in the Nifty 50 index will be “more liquid and efficient” on Gift Nifty. Additionally, it is anticipated to draw more international capital to the Indian stock market.

As part of its efforts to increase India’s appeal as a location for foreign investment, the NSE launched Gift Nifty. In the future, the NSE intends to introduce other derivative products on the Gift Nifty index, according to its announcement.

Additionally, the GIFT Nifty futures trade from GIFT – IFSC (NSE IFSC), whereas the Indian Nifty trades on the NSE, the platform for the Indian stock exchange.

Given that it aids Indian investors in forecasting and observing the movement of the Indian Nifty, the Gift Nifty is significant to the Indian stock market.