India's economy is among the fastest-growing in the world, with significant progress mirrored in the country's stock market. This rapid development has led to various innovations, one of which is the introduction of GIFT Nifty, a new financial tool that has garnered attention in recent years.
GIFT Nifty, or Gujarat International Finance Tec-City Nifty, is a futures contract that provides international investors with an opportunity to gain exposure to the Indian stock market without direct investment. Serving as a key indicator, it helps predict the Nifty 50 index's movement on any given day.
Launched in July 2023, GIFT Nifty is the result of rebranding SGX Nifty after its trading operations moved from the Singapore Stock Exchange to the NSE International Exchange (NSE IX) located in GIFT City, Gandhinagar, Gujarat. The contract's value is closely linked to the Nifty 50 index.
Key Features of GIFT Nifty
Futures Contract: GIFT Nifty operates as a futures contract.
International Exposure: It enables global investors to tap into the Indian stock market.
Market Sentiment Indicator: Traders use it to gauge market sentiment.
Foreign Currency Trading: Transactions are conducted exclusively in foreign currencies.
GIFT Nifty Trading Timings: A 21-Hour Market
GIFT Nifty operates nearly around the clock, split into two trading sessions. The first session starts at 6:30 AM IST and runs until 3:40 PM IST. The second session begins at 4:35 PM IST and concludes at 2:45 AM IST the following day.
GIFT Nifty Trading Schedule:
First Session: 6:30 AM to 3:40 PM (IST)
Second Session: 4:35 PM to 2:45 AM (IST)
Who Can Trade in GIFT Nifty?
According to NSE IX guidelines, both Indian and foreign trading members, whether registered or non-registered, can trade in GIFT Nifty products by obtaining membership with NSE IX. Over 50 brokers have already established operations in GIFT City, enabling them to execute trades for both their accounts and those of their clients.
However, Indian retail traders are currently not permitted to trade in GIFT Nifty under RBI’s Liberalised Remittance Scheme (LRS). While LRS allows Indian citizens to remit up to $250,000 abroad annually, it imposes certain restrictions on offshore investments.
Traders can easily monitor GIFT Nifty through platforms like TradingView. Here's how:
Log in to your TradingView account.
Search for "GIFT NIFTY."
Select "GIFT NIFTY 50 INDEX FUTURES" under NSEIX.
The live chart will then be available for tracking.
How to Trade in GIFT Nifty
For non-resident Indians (NRIs) and foreign investors, trading in GIFT Nifty is straightforward through a registered broker with NSE IX. Here’s a simplified guide:
Open a Trading Account: Set up an account with a broker registered on NSE IX.
Complete KYC: Submit identity and address proof, such as a PAN card, Aadhar card, passport, visa, etc.
Deposit Funds: Fund your account, with trading allowed in currencies other than the Indian rupee.
Start Trading: Analyze market dynamics and invest based on your research and strategy.
GIFT Nifty offers a unique avenue for global investors to participate in India’s rapidly growing economy, reflecting the ongoing evolution of the country's financial markets.
With inputs from agencies
Image Source: Multiple agencies
© Copyright 2024. All Rights Reserved Powered by Vygr Media.
