By observing this, the investors get an idea about the Indian market and whether it will open with positive or negative results. This allows investors to keep an eye on the SGX nifty to know the fluctuations in the market and observe how the overall trading process is going. There is also a time difference between the Indian Nifty and the SGX Nifty, wherein the Singapore market opens about two and a half hours before the Indian market. How does SGX Nifty impact the Indian Market?Īs we already discussed, the SGX Nifty proves to be helpful in predicting and observing the Indian Nifty's behaviour. These characteristics of SGX nifty make it more profitable. This is definitely not the case with the Indian Nifty, which is a National exchange platform. SGX Nifty sees a high amount of customers and trading activities because it is the most active trading platform in Singapore and the only trading platform that works for sixteen hours a day. This means that SGX nifty does not have a contract with shares, whereas every Indian nifty must include shares. In an Indian Nifty a contract between the buyer and the seller must have a minimum of 75 shares, which is not required in the SGX nifty. The main difference between the SGX Nifty and the Indian Nifty is that the SGX Nifty is a futures trade platform in Singapore where the prices of a stock are predetermined to avoid the future risk, whereas the Indian Nifty trades only on the Indian stock exchange platform, which is the National Stock Exchange or NSE.Īnother important difference is the contract size of the Indian Nifty and the SGX nifty. How is SGX Nifty different from Indian Nifty? To make it easy for you to understand, you should keep in mind that like Indian Nifty trades on the NSE, which is the Indian stock exchange platform, the SGX nifty is the futures trade nifty in Singapore where as the price of the share is preset, the buyer and seller have to commit to that pre-decided price in spite of any changes that may take place in the stock market in the future.Īs the Singapore Stock Exchange is the leading stock exchange in India, the SGX nifty helps to predict and observe the behaviour of the Indian Nifty and thus has an important role to play in the Indian stock market. SGX Nifty is a derivative of the Nifty index, which is traded in the Singapore stock exchange platform, where this trade sets a predetermined price of a share and reduces the future risk of any investments. Now that we have a basic knowledge about what nifty is, let's shift our focus to what we actually came here to learn about-SGX Nifty.
By conducting surveys of the top listed companies, Nifty gives a hint to the investors about which company has the potential to perform well in the future so that they can invest accordingly to reap the maximum profit. Nifty lists the companies according to their stock market performance and puts them in a ranking system that keeps the company performing the best at the top. It is one of the two main stock exchange indices in India, the other being BSE SENSEX. It represents 50 companies that are some of India's largest companies and puts forth their weighted average to help investors know about the performance of the companies in the stock market. As discussed above, Nifty is a stock market index for the Indian Stock Exchange (NSE) platform. Nifty was launched on the 22nd of April 1996 and is owned and managed by NSE indices. But before we go on to understand what SGX nifty actually is, let's take a little more time to get familiar with the term Nifty.
However, although Nifty is India's platform for stock exchange that helps investors understand how a company performs daily before making a big investment, there is another term that most people get confused with. To better understand this platform, it is also important to know that every country has its own platforms for stock exchange.
So what exactly is this Nifty? Nifty is nothing but a small sample of 50 companies of the index market, belonging to different economic sectors that are introduced by National Stock Exchange or NSE, which is an Indian stock exchange platform. These news stories are often about how the points in this platform are going up and down.
When you read finance-related news in a newspaper or an online news site, you will often come across the term Nifty. As more and more people are becoming interested in investing in stocks, the need to understand all the important terms that are related to the stock market has also increased. Investing in stocks to grow your money has become more common and popular in recent times.
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