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What Is GIFT Nifty?
GIFT Nifty is a futures contract based on the Nifty 50 index, launched and traded at the NSE International Exchange (NSE IX) within GIFT City, Gujarat. It is specifically designed to replace the SGX Nifty contract that was previously traded on the Singapore Exchange, thereby centralising global index derivative trading in India.
The contract offers exposure to India’s top 50 listed companies, representing crucial sectors of the economy. It facilitates seamless access for foreign and domestic investors by operating nearly round-the-clock, spanning Asian, European, and US trading hours. GIFT Nifty is denominated in Indian Rupees (INR) but is accessible for trading to global participants.
Its extended trading window allows investors to manage risk more efficiently and react quickly to international events impacting Indian markets. The contract is cash-settled, with no physical delivery, and comes with robust risk management protocols regulated by Indian authorities.
GIFT Nifty vs SGX Nifty: What’s the Difference?
Trading Hours
Pre-open session: 6:40 AM – 6:50 AM (Singapore Time) Second Session: 4:35 PM – 2:45 AM (next day)
First Session: 6:30 AM – 3:40 PM Second Session: 4:35 PM – 2:45 AM (next day)
Regulatory authority
Monetary Authority of Singapore (MAS)
International Financial Services Centres Authority (IFSCA)
| Parameter | SGX Nifty | GIFT Nifty |
|---|---|---|
Exchange | Singapore Exchange (SGX) | NSE International Exchange (NSE IX) |
Currency | USD | INR |
Trading Hours | Pre-open session: 6:40 AM – 6:50 AM (Singapore Time) Second Session: 4:35 PM – 2:45 AM (next day) | First Session: 6:30 AM – 3:40 PM Second Session: 4:35 PM – 2:45 AM (next day) |
Settlement | Cash | Cash |
Regulatory authority | Monetary Authority of Singapore (MAS) | International Financial Services Centres Authority (IFSCA) |
Underlying | Nifty 50 Index | Nifty 50 Index |
Access | International Investors | Global Institutions, NRIs, and eligible Indian entities |
The move from SGX Nifty to GIFT Nifty is part of India’s drive to consolidate offshore trading of Indian indices within its own jurisdiction, boosting transparency and domestic market participation.
How Does GIFT Nifty Work?
GIFT Nifty is traded on the NSE IX at GIFT City under a regulated framework. Investors can participate using trading accounts opened with IFSC-registered brokers. The contract mirrors the Nifty 50 index, and prices move in tandem with the performance of the underlying index stocks.
The extended trading hours, from early morning until nearly 3 am the next day, enable investors to hedge positions or take exposure ahead of or after significant global events. Orders are matched electronically, and contracts are cash-settled in INR, with daily mark-to-market settlements.
The risk management framework includes margin requirements, position limits, and automated monitoring to protect traders and ensure market integrity. GIFT Nifty provides a transparent, efficient, and cost-effective tool for global exposure to Indian equities.
GIFT Nifty Importance in the Indian Stock Market
GIFT Nifty has transformed the Indian stock market landscape by consolidating global trading of Nifty index derivatives under Indian regulatory control. For global investors, it offers direct access to Indian equity exposure during international hours, eliminating the need to rely on offshore contracts like SGX Nifty. For NSE and Indian authorities, it ensures market oversight, improved transparency, and greater participation from Foreign Portfolio Investors (FPIs) and Non-Resident Indians (NRIs).
Here's how GIFT Nifty benefits the Indian stock market:
- Centralises Indian index trading within India, boosting domestic volumes.
- Extends access for global participants across different time zones.
- Enhances transparency and compliance under IFSCA regulations.
- Improves price discovery and liquidity for Nifty-linked products.
- Generates additional revenue for the Indian financial ecosystem.
These features strengthen India’s position as a global financial hub.
Impact of GIFT Nifty on the Indian Stock Market
GIFT Nifty has had a notable impact on the Indian stock market by bringing global index trading volumes back to Indian exchanges. This shift has enhanced liquidity, improved price discovery, and minimised arbitrage opportunities that previously existed between SGX Nifty and NSE Nifty.
It has also increased transparency and regulatory oversight, reducing the risk of market manipulation. Domestic brokers and investors now have greater access to international liquidity, making it easier to hedge portfolios or take directional bets aligned with global sentiment.
The consolidation of trading in India has also promoted technological upgrades and greater integration of Indian markets with the global financial system. Overall, GIFT Nifty’s introduction is a major positive for the Indian capital markets ecosystem, fostering higher investor confidence and deeper market participation.
How to Trade in GIFT Nifty?
Only eligible participants, such as FPIs, NRIs (trading from overseas), and institutional investors, can trade GIFT Nifty directly on the NSE IX. Indian resident retail investors are currently not permitted to trade GIFT Nifty under existing regulations.
If you're an eligible investor, here’s how to trade in GIFT Nifty:
- Choose an IFSC-registered broker: Open a trading account with a broker authorised to operate on NSE IX at GIFT City.
- Complete KYC and funding: Fulfil all Know Your Customer (KYC) requirements and fund your account in INR or eligible foreign currencies.
- Access trading platform: Log in to your broker’s trading platform and select GIFT Nifty contracts.
- Analyse market trends: Use GIFT Nifty live charts, technical indicators, and news updates to make trading decisions.
- Place orders: Enter buy or sell orders for GIFT Nifty futures contracts as per your strategy.
- Monitor positions: Track your open positions, margins, and account balance.
- Square off or rollover: Close or roll over contracts before expiry if required.
- Settle trades: Settlement is cash-based, with profits or losses directly credited/debited to your trading account.
Strategies to Trade in GIFT Nifty
There are different ways to trade GIFT Nifty, depending on your market outlook and risk appetite. Day traders may try to make money by scalping small price changes when the market is very volatile. Swing traders, on the other hand, can make money by holding positions across sessions and taking advantage of bigger trends.
In a market that is always changing, hedging strategies that use options or other derivatives can help you control your risk. Traders tracking global trends may benefit from GIFT Nifty’s extended hours, which overlap with European and US markets. While not typically used for passive investing, long-term investors can use GIFT Nifty futures tactically to align their global portfolios with Nifty 50 movements or to hedge equity exposure.
Using both fundamental analysis and technical tools can make trades even more likely to be successful. No matter what strategy you use, you need to be disciplined and manage your risks carefully in the GIFT Nifty market, which is very liquid and moves quickly.
GIFT Nifty FAQs
What is GIFT Nifty and how is it different from Nifty 50?
GIFT Nifty is a futures contract on the Nifty 50 index but traded on the NSE International Exchange (NSE IX) at GIFT City, Gujarat. The Nifty 50 is an index of 50 of the most liquid and large-cap stocks listed on the NSE in India.
The major distinction between the two is that GIFT Nifty is a derivative product (futures contract) whereas Nifty 50 is an index. Unlike the Nifty 50, which is simply a benchmark index and not directly tradable, GIFT Nifty is a futures contract that provides real-time market access to eligible global investors and institutions.
One of GIFT Nifty’s major advantages is its extended trading window of nearly 22 hours, covering major global time zones, while the Nifty 50 'spot' is open only during Indian market hours.
Why did GIFT Nifty replace SGX Nifty?
GIFT Nifty replaced SGX Nifty as part of an agreement between Indian and Singapore exchanges to relocate offshore trading of Indian index derivatives back to India.
The primary objective was to centralise liquidity, strengthen regulatory oversight under Indian authorities (specifically IFSCA), and ensure that global participation in Indian equity derivatives benefits the domestic financial ecosystem. It also removes arbitrage opportunity and decreases the trading volumes to foreign jurisdictions.
Why is GIFT Nifty important for global traders?
GIFT Nifty is critical for global traders because it enables real-time access to Indian equity index derivatives almost 24x7, letting them react to global macro events, hedge positions, or speculate on Indian markets regardless of their local time zone. Its extended trading hours cover Asian, European, and US sessions, so foreign investors don’t have to wait for Indian market opening to take positions.
What does GIFT Nifty indicate about Indian market trends?
GIFT Nifty is often used as a lead indicator for the likely direction of Indian equity markets. Since it trades before NSE opens and during international hours, GIFT Nifty reflects market sentiment shaped by overnight developments and global cues.
It provides early signals on how Indian equities might perform at the opening bell and hence many traders follow GIFT Nifty news and prices. For instance, when GIFT Nifty is trading higher during pre-market hours, it is generally expected that Indian markets will open on a positive note and vice versa.
How reliable is Gift Nifty as a market indicator?
In general, GIFT Nifty is a trustworthy indicator to view the opening direction of the Nifty 50 spot index, particularly when there are large global events occurring outside of regular Indian market hours.
However, it consists of a futures contract, so some short-term distortions or manipulations might be witnessed at odd hours, given the thin volumes in which it is trading. Overall, it is a solid indicator but not foolproof and should be used in conjunction with other data when making any serious trading calls.
What is the current rate of GIFT Nifty and where can I track live prices and charts?
GIFT Nifty’s price changes in real time. The GIFT Nifty live details, including the price and chart, are available on the Kotak Securities website—just scroll to the top of this page to view them. You can also track GIFT Nifty prices and real-time updates on the official NSE IX website for additional reference.
What are the trading hours of GIFT Nifty?
The GIFT Nifty market time is split into two sessions:
- Session 1: GIFT Nifty opening time is 6:30 am to 3:40 pm IST
- Session 2: 4:35 pm to 2:45 am IST (next day)
No trading on weekends or Indian exchange holidays.
Which exchanges list GIFT Nifty for trading?
GIFT Nifty is listed and traded exclusively on the NSE International Exchange (NSE IX) located at GIFT City, Gujarat, India. It is not available on the regular NSE or BSE, and following its migration, it is no longer traded on the SGX.
Who controls or regulates GIFT Nifty?
GIFT Nifty is regulated exclusively by the International Financial Services Centres Authority (IFSCA), which oversees all trading activity at the NSE International Exchange (NSE IX) within GIFT City.
SEBI does not directly regulate GIFT Nifty, but it plays an indirect, enabling role, providing frameworks for Indian entities and brokers to operate in the IFSC zone. However, the legal mandate, supervision, and enforcement for GIFT Nifty trading lie solely with IFSCA.
Who can invest in Gift Nifty?
GIFT Nifty is accessible to eligible participants such as FPIs, NRIs (trading from overseas), and institutional entities. To trade GIFT Nifty, investors must open an account with an IFSC-registered broker, complete KYC documentation, and comply with exchange rules.
Can retail investors in India trade in GIFT Nifty?
Indian retail investors cannot directly trade in GIFT Nifty, as residents are not permitted to access NSE IX under the current regulatory framework.
How can foreign investors trade GIFT Nifty?
Foreign investors must open a trading account with an IFSC-registered broker at GIFT City, complete KYC, and fund their account (usually in INR or permitted foreign currencies). Once approved, they can trade GIFT Nifty like any other index future.
What are the margin requirements and contract specifications of GIFT Nifty?
- Contract size: 50 units of Nifty 50 index
- Settlement: Cash, in INR
- Tick size: INR 1
- Margin: Typically around 10–15% of contract value, subject to change based on volatility and exchange rules
- Expiry: Monthly and weekly
Margin requirements are set by NSE IX and can change frequently. Always check your broker or NSE IX’s official circulars for the latest numbers.
What is GIFT NIFTY 50 Index Future volumes?
GIFT Nifty 50 Index Futures have witnessed strong and growing volumes since their launch in July 2023. As of May 2025 , monthly turnover crossed $102 billion, with over 2 million contracts traded in that month alone, reflecting robust participation from global institutions and offshore investors.
For the latest daily and historical volume data, visit the statistics section of the NSE IX website.
What are the tax implications of trading in Gift Nifty?
Taxation for GIFT Nifty depends on the investor’s country of residence. For eligible investors such as NRIs, FPIs, or IFSC-registered entities, trading on NSE IX may offer tax advantages, including exemption from STT, CTT, and stamp duty, and lower GST on brokerage and related services. Foreign investors may also be subject to taxation in their country of residence, governed by any applicable Double Taxation Avoidance Agreements (DTAAs) with India.
Resident Indian individuals are currently not permitted to trade GIFT Nifty directly, so these tax benefits do not apply to them unless accessed through indirect structures. Tax rules are subject to change. Always consult a qualified tax advisor to understand how the rules apply to your specific situation.