Indicator 12- SGX Nifty & Global Market

Welcome to yet another and the last article regarding the options trading strategy. In the out previous article, we had seen how we can calculate the range of Nifty. I hope you enjoyed the journey with us. Now, we are going to discuss the SGX Nifty which is traded on the Singapore exchange.

When one talks about the business section of the newspaper or watches new channels on their TV or online, it becomes for sure to miss out on the term Nifty or the constant news that high point how points within this platform either go up or down.


But before telling you what Nifty is, one concept that must be noted down is that every nation or country has its platforms where they exchange stocks. The platform where Indian stocks are traded will be different from the platform where Chinese stocks are exchanged. Nifty is a small representative of 50 companies of the index market from different economic sectors, introduced by the National Stock Exchange or NSE which is an Indian platform for stock exchange.


This platform gives an idea to the investors on how a specific company performs in a day. Since companies are considering according to their performance in the market, Nifty record them all based on which companies are doing better than the other, take after a ranking system.


If you are an energetic stock market trader in India, I am sure that you would have certainly heard of the term ‘SGX Nifty’. If you go to any business news channel, then before the opening of the Indian stock market, all you will see is an hour-long discussion on the SGX Nifty and its hint on the opening of the Nifty for that day.


The importance of understanding this term can be seen from the factor that it is one of the most popular terms followed or searched over the different platforms and also watched by different kind of people if one wants to have a better picture of the Indian Equity market. In this article, we are going to discuss what completely is SGX nifty and how it affects the Indian share market.


The word SGX is a short form of the Singapore Stock Exchange. Further, Nifty is the standard index of the National Stock Exchange (NSE) of India and it is consisting of the top 50 companies listed on NSE. Overall, if we were to add these two situations, we can say that SGX Nifty is the Indian Nifty listed on the Singapore Stock Exchange. It is an actively traded futures contract on Singapore Stock Exchange.

The SGX Nifty is a lot more volatile than the Indian Nifty 50. The factors that affect its volatility have little to do with the facts that direct the NSE Nifty 50. The time difference creates the SGX Nifty to open before the NSE but since most traders stand by for the NSE trading to start before they trade SGX Nifty, there is the little outcome that it has on the NSE. Stock exchange achievement is anyway depending on the news of the days, and the international market achievement plays a much bigger role in how the NSE performs each day. SGX Nifty gives a clue to traders who cannot trade on the NSE (National Stock Exchange) in India. Moreover, while the NSE market for futures rests open only for six and a half hours in India, the SGX Nifty rests open for 16 hours, and even after the Indian markets close. This makes it easier for traders to hold from longer market hours. SGX Nifty extends up at 8 AM (Singapore time) on all working days. You can trade on the SGX Nifty index from 6:30 AM to 11:30 PM, as per the Indian time (IST).


The geographical time of India and Singapore, which is located on the same continent, tells us a lesser time error between the two regions, and later, a better affinity between the two exchanges. As SGX Nifty opens up at 8 AM (Singapore time), which is before the Indian stock exchanges, the opening direction which the Indian markets receive is from SGX Nifty.

While SGX Nifty is more volatile compared to its Indian Nifty 50, both derivatives last in sync with each other. A lot of external factors donate to the volatility of the SGX Nifty, one being the higher number of working hours as compared to that of Nifty 50. SGX Nifty not only gives us the facility of trading in the Nifty derivatives market in the Singapore exchange but has also opened the doors for global players to trade in the Indian derivatives market. With this, more and more foreign investors have been motivating to invest in the Indian derivative market.


So, in conclusion, the Indian stock exchange, just like every other main stock exchange in the world, outlines and is very much affected by ups and Downs in global markets. NSE markets depend on Asian, European, and American Market and bring a sign from them. Traders look at how international markets are doing to place their order for the day, and if international stock exchanges are not doing very well, traders hold back from making large purchases in the local stock exchange as well.

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