Page 258 - IMDR JOURNAL 2023-24

IMDR’s Journal of Management Development & Research 2023-24

Indices

Nifty 50
The National Stock Exchange of India Ltd.'s (NSE) flagship index is the NIFTY 50. The

leading businesses with highest market capitalisation across various sectors make up the
index. It is made to represent the 1600 listed business and has 65% contribution in the market

capitalisation. Since 1996, the Nifty 50 index has been the benchmark, a go to index for fund
managers. The index acts as a valuable tool for the fund managers, offering a consolidated

portfolio that spans key sectors on Indian economy.

SGX Nifty
SGX is one the prominent exchange in the Asian continent, with a diverse array of asset

classes spanning multiple nations. The derivative products of the Nifty index are tradable on

SGX, however specific Indian market assets are not. Index futures are the most widely traded
derivative product on SGX because they enable foreign investors to enter the Chinese and

Indian markets. Since it let foreign investors make investments in the Indian market, the
Singapore Exchange's SGX Nifty derivative product was highly well-liked. Traders used our

SGX Nifty futures live updates to navigate the international markets. The Nifty Futures were
earlier traded on the SGX Exchange.

GIFT Nifty

Futures are now traded in the GIFT City as Gift Nifty following the establishment of the
GIFT City in Gujrat. A significant turning point for GIFT IFSC's outreach to international

investors and improvement of GIFT City's capital market environment is GIFT Nifty. An
important turning point for the Indian share market was the futures moved from the

Singapore exchange to the NSE. In the next chapter, we shall examine GIFT nifty's
beginnings.

Inception of Gift Nifty

In the past, the Singapore Exchange and NSE used to work together, allowing trading of
Nifty futures and options in Singapore. However, in 2018, they went separate ways as the

NSE claimed that the Singapore Exchange violated its rights by announcing derivative

products. After some legal back-and-forth, they officially split in September 2020, leading to
the birth of GIFT Nifty, thanks to GIFT City in Gujarat.

The NSE International exchange in GIFT City, Gujarat, houses the Nifty, now called NSE's
IFSC-SGX Connect Nifty Index. Since July 3, 2023, all SGX open positions moved to the

NSE International Exchange ISFC Limited (NSE IX), and SGX Nifty became GIFT Nifty.
NSE IX, NSE's GIFT City subsidiary, follows IFSCA rules, allowing trading in currencies

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