The SGX Nifty and Difference Between S and P CNX Nifty and Nifty
What is SGX Nifty? SGX or Singapore Exchange is one of the leading stock exchange in Asia, movement on which somehow reflects in other stock indices inside the continent. SGX Nifty is Singapore Stock market Nifty which implies the Indian CNX Nifty traded in Singapore exchange. It's very popular derivative product of Singapore Exchange as it allows foreign investors to look at position in Indian Market.
sgx nifty live
In Singapore Exchange, Indian stocks is not traded but It allows future products 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 as well as other individuals to invest in Nifty Futures. Since trading is completed for NSE Index, Singapore Nifty is Chosen the basis of the closing tariff of NSE Index price (S&P CNX Nifty). Trading Timings - There's 2 types of Contracts in SGX with some other settlement periods -
1. E - SGX QUEST (T) With Settlement inside the same day, Timings- Mon-Fri - 9.00AM-6.15 PM
2. E* - SGX QUEST (T+1) With Settlement after eventually, Timings- Mon-Fri- 7.15PM-1AM
These two contracts have different trading timings which enables traders all over the world to swap SGX even if the market is closed. FII's invest in 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 according to IST. Thus by tracking Singapore Nifty, we can easily predict the initial direction of Indian Stock trading game.
sgx nifty chart
Difference Between Singapore Nifty and NSE Index (S&P CNX Nifty)-
SGX-Nifty product is denominated in dollars which offers foreign traders or investors direct currency protection once they use SGX products for hedging. While in case of Nifty Futures, a foreign investor has to combine position on Nifty Futures which has a position on the doller-rupee forward market.
Foreign Investors needs to go through variety of complexities to get into 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 based on the Indian Nifty hence used as a tol to predict the Indian market providing initial direction to the Indian market. Moreover both India and Singapore fall inside the same continent which co-related both the market and one generally decides the sentiments of the other market. This is the reason it becomes easy for Indian advisory and loan companies to give trading tips about SGX Nifty.