Definition
GIFT Nifty
GIFT Nifty is the Nifty futures contract traded on NSE International Exchange at GIFT City, succeeding the old SGX Nifty.
After Nifty derivatives moved from Singapore (SGX) to the NSE IX at GIFT City in Gujarat, the contract became GIFT Nifty. It trades for long hours across two sessions, including times when Indian cash markets are closed, giving an early read on sentiment.
Indian traders watch GIFT Nifty before the market opens to anticipate the likely gap up or gap down on Nifty, since it reflects overnight global cues. It serves the same indicative role SGX Nifty once did, now with the liquidity domiciled within India's own international exchange.
Related terms
- Nifty 50The Nifty 50 is the NSE's free-float market-cap-weighted benchmark index tracking 50 of India's largest, most liquid companies across sectors.
- Futures ContractA futures contract is a binding agreement to buy or sell an asset at a fixed price on a set future date, with both parties obligated to honour it.
- Index Futures vs Stock FuturesIndex futures track a basket like Nifty and settle in cash, while stock futures track a single company and settle physically.
- Gap Up / Gap DownA gap is when a stock or index opens significantly above (gap up) or below (gap down) the previous close, leaving an empty space on the chart.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.