The Indian Economy presently happens to be one of the fastest-growing economies in the world. Over the recent years, we have witnessed tremendous growth in the country, which is reflected through the Indian stock market. Along with this fast growth comes the evolution of the stock market. One such evolution we have witnessed over these recent years is the introduction of GIFT Nifty.
In this article, we will learn about GIFT Nifty, its timings, and finally how to trade in the GIFT Nifty to get exposure to the Indian stock market.
What is GIFT Nifty?
GIFT Nifty stands for Gujarat International Finance Tec-City Nifty. It is a kind of futures contract by which international investors can get exposure to the Indian stock market without essentially investing in it. It also works as a leading indicator to predict the Nifty 50 index movement on a given day.
GIFT Nifty was launched in July 2023, following the rebranding of the erstwhile SGX Nifty as its trading base was shifted from the Singapore Stock Exchange to the NSE International Exchange in GIFT City, Gujarat’s Gandhinagar.
The value of the underlying GIFT Nifty futures contract is derived from the Nifty 50 index.
Features of Gifty Nifty
Gifty Nifty is a future contract.
It serves as a channel for international investors to seek exposure in the Indian stock market.
Gift Nifty draws its value from Nifty 50.
It’s used by traders to understand market sentiment.
Traded in foreign currencies only
GIFT Nifty Timings
The GIFT Nifty is traded for almost 21 hours in two sessions. The first session begins at 6:30 AM IST and closes at 3:40 PM IST, while the second begins at 4:35 PM and closes at 2:45 AM IST the next day.
Overview of GIFT Nifty Timings
First Session: 6:30 AM-3:40 PM (IST)
Second Session: 4:35 PM (IST) to 2:45 AM (IST)
Participants who can trade in GIFT Nifty are:
According to NSE IX, any Indian or foreign trading member, whether registered or non-registered by setting up its office through a subsidiary or branch model will be able to trade in the GIFT Nifty products on getting a membership of NSE IX.
Presently, more than 50 brokers have set up their units in the GIFT city. These trading members are allowed to execute trades on their accounts and their client’s accounts.
However, under the LRS of RBI, Indian retail traders would not be allowed to trade in GIFT Nifty. The scheme does allow every citizen of India to remit funds abroad up to $250,000 per financial year while placing certain restrictions on offshore investments.
NSE IX is a subsidiary of NSE and is situated at GIFT City. It operates an international financial center in the state of Gujarat. NSE IX provides dollar-denominated trading in different types of financial products.
How to track Gift Nifty
There are a couple of ways that traders track GIFT Nifty. One popular method for traders is using TradingView. Here’s how you can do it:
Login to the TradingView account.
Click inside the search bar and type “GIFT NIFTY.”
Select from the search results, “GIFT NIFTY 50 INDEX FUTURES” by NSEIX.
Once chosen, the live GIFT NIFTY chart will pop out on your screen, and you can view it conveniently.