Gift Nifty

GIFT Nifty is a set of derivative contracts linked to India’s Nifty indices and traded on the NSE International Exchange (NSE IX) in GIFT City, Gandhinagar. It replaces the earlier SGX Nifty contract that was traded on the Singapore Exchange, marking a major shift in how global investors access India’s equity markets.

The transition from SGX to GIFT City brought the entire offshore Nifty derivatives ecosystem, nearly $7.5 billion worth of daily trades under India’s regulatory and operational umbrella. This move strengthens India’s position as a global financial hub and gives international investors a direct gateway to trade Nifty-linked products from within India.

GIFT Nifty is widely used by hedge funds, institutional investors, and global market participants to hedge their India exposure or to take directional calls on the Nifty 50. Because it trades for extended hours and overlaps with major global markets, GIFT Nifty often reacts to international news before the Indian cash market opens, making it a valuable indicator of market sentiment.

Any foreign or Indian trading member, whether operating through a branch office or a subsidiary, can trade on NSE IX after obtaining membership. However, Indian retail investors cannot trade GIFT Nifty under the Liberalised Remittance Scheme (LRS). The products are primarily meant for institutional and offshore participants.

Earlier, SGX Nifty traded nearly 21 hours a day, giving investors a long window to react to global cues. GIFT Nifty retains the extended-hours structure, allowing price movement well before and after Indian markets open. GIFT Nifty operates in two sessions, the first between 6:30 AM IST to 3:40 PM IST and the second is between 4:35 PM IST to 2:45 AM IST. This makes GIFT Nifty an early indicator of sentiment and a useful tool for understanding how global developments might influence the Nifty 50.