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The SGX Nifty and Difference Between S and P CNX Nifty and Nifty

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What exactly is SGX Nifty? SGX or Singapore Exchange is probably the leading stock exchange in Asia, movement 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 is rather popular derivative product of Singapore Exchange as it allows foreign investors to consider position in Indian Market.

sgx nifty live

In Singapore Exchange, Indian stocks can not be traded but It allows future goods 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 along with other individuals to invest in Nifty Futures. Since trading is conducted 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 two types of Contracts in SGX with various settlement periods -

1. E - SGX QUEST (T) With Settlement in 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 purchase 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 depending on IST. Thus by tracking Singapore Nifty, we can predict the initial direction of Indian Currency markets.

sgx nifty chart

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

SGX-Nifty method is denominated in dollars which gives foreign traders or investors direct currency protection whenever they use SGX products for hedging. When it's in case of Nifty Futures, a foreign investor has to combine position on Nifty Futures with a position on the doller-rupee forward market.

Foreign Investors has to go through variety of complexities to access Indian Nifty therefore, the dollar rupee forward market. The Margins at SGX goods are lower than that of NSE.

How SGX- Nifty Affect Indian Stock Market-

Singapore market open around 2 hour before Indian market and directly refers to NSE market. It moves with regards to the Indian Nifty hence utilized as a tol to predict the Indian market providing initial direction for the Indian market. Moreover both India and Singapore fall in the same continent which co-related the two market and one usually decides the sentiments from the other market. That is why it becomes easy for Indian advisory and finance institutions to give trading recommendations on SGX Nifty.


Posted Nov 25, 2015 at 9:06am