SGX stands for Singapore Exchange. SGX NIFTY is a derivative of NIFTY index traded in Singapore Stock Exchange. Not all the shares comprising of the NIFTY are traded there. It is a competitive product for NIFTY futures, the transactions of which are settled in Singapore stock exchange.
Nifty futures on the SGX is traded for 16 hours on that exchange and NIFTY trades for six-and-half hours on the NSE stock Market in India. The Foreign Investors who are unable to access Indian markets, but who want to take a benefit in Indian market trade in SGX Nifty.
India and Singapore are in the same continent and due to global effect of share trading, the SGX nifty also indirectly related to the SENSEX (Bombay Stock Exchange Index) and NIFTY. After the globalization of offer exchanging, when nations can exchange with each other, any adjustment in the monetary execution of one nation has an effect on the stock costs of another nation. SGX Nifty thus moves with respect to the Indian Nifty. The SGX Nifty opens at 8:00 am all working days and gives the initial direction of the Indian share market.
The Singapore Nifty is more volatile than the Indian NIFTY. The factors that influence its volatility have little to do with the factors that direct the NSE Nifty. The time difference causes the SGX Nifty to open before the NSE but since most traders wait for the NSE trading to start before they trade SGX Nifty, there is the little effect that it has on the NSE.
Stock Exchange performance is anyway dependent on the news of the days, and the international market performance plays a much bigger role in how the NSE performs each day.
SGX Nifty trend is the first indication of an initial direction of Indian stock exchange. India stock market open in morning at 9:00 AM that is pre-opening session and actual trading start at 9:15 AM and trading closes at 3:30 PM, whereas SGX is available to trade between 6:30 AM to 11:30 PM as per Indian time, allowing investors to trade even when Indian Markets are closed.
KEY POINTS ABOUT SGX NIFTY:
SGX nifty offers foreign investors to invest in NIFTY Futures.
SGX moves along with Indian Nifty. So, it serves as a predictive factor for NSE market and the traders.
SGX Nifty is available 6:30 AM to 11:30 PM as per Indian time.
Singapore Nifty (SGX Nifty) is the Indian Nifty that is traded in Singapore Stock Exchange.
It is usually the first indication of the initial direction of Indian stock exchange.
The margin at SGX product is lower than those of NSE.
The SGX Nifty takes prompts from the Indian Nifty, and since the Indian Nifty likewise takes signals from household factors, worldwide financial variables, and geopolitical news that being accounted for over the world, so in actuality, SGX Nifty has practically zero effect on how the NSE performs amid the day.