What Is GIFT Nifty? Everything You Need to Know

India has made a significant leap to become a global financial powerhouse. One big step in this direction is the shift of the SGX Nifty, once traded in Singapore, to GIFT City, India’s first International Financial Services Centre (IFSC). The index is now called GIFT Nifty and is operated entirely out of Gandhinagar, Gujarat.

GIFT Nifty hit a record high of US $102.35 billion in monthly turnover in May 2025, up from US $100.93 billion in April 2025. This reflects increased global confidence in India’s financial ecosystem and the addition that GIFT City will make to international finance. But what is GIFT Nifty, and how is it used? Let us find your answers.

What was SGX Nifty?

Before GIFT Nifty, SGX Nifty existed. It was a derivative contract based on the Nifty 50 index that was traded on the Singapore Exchange (SGX).

Why did this matter?

• Due to Singapore’s earlier time zone, SGX Nifty started trading hours before Indian markets opened, making it a widely followed indicator of expected market sentiment and opening trends in India.
• Traders globally used SGX Nifty futures to hedge, speculate, or predict the direction of the Indian stock market.
• SGX Nifty allowed foreign investors to gain exposure to Indian equities without having to register with Indian regulators or trade on Indian exchanges.

What is GIFT Nifty?

GIFT Nifty is a futures contract traded on the NSE International Exchange (NSE IX), located within the Gujarat International Finance Tec-City (GIFT City) in Gandhinagar. On July 3, 2023, trading shifted from the Singapore Exchange to India, rebranding it as GIFT Nifty.

It is a US dollar-denominated futures contract that gives early signals on how the Indian market might open. GIFT Nifty offers investors and market participants useful information on sector-specific trends and broader market sentiment. 

Four derivative contracts are currently available under the GIFT Nifty: GIFT Nifty 50, GIFT Nifty Bank, GIFT Nifty Financial Services, and GIFT Nifty IT. 

Why Did SGX Nifty Shift to GIFT Nifty? 

The SGX Nifty began trading on September 25, 2000. Thanks to a deal with India’s NSE, traders could buy and sell Nifty futures and options in US dollars on the Singapore Exchange. But that changed on June 30, 2023. SGX Nifty contracts are no longer traded in Singapore, as all activity has moved to NSE IFSC at GIFT City. 

The shift from SGX to GIFT City was part of India’s strategy to:

• Create a strong international financial hub within Indian borders.
• Keep control of capital flows and trading volumes within the country.
• Discourage the offshore trading of Indian derivatives.
• Attract global investors to India’s tax-free trading zone.
• Promote price discovery of Indian products in dollar terms across all time zones.

Trading Hours of GIFT Nifty

GIFT Nifty offers extended trading hours across two sessions, stretching over 21 hours daily. GIFT Nifty timings are as follows:

• First Session: 6:30 AM to 3:40 PM IST
• Second Session: 4:35 PM to 2:45 AM IST

This wide trading window attracts European and American investors and matches with international market timings. This allows traders to react to global events that might affect Indian markets.

Benefits of GIFT Nifty for Investors

GIFT Nifty offers many benefits that make it interesting to global investors:

• Market Timing Alignment: GIFT Nifty follows NSE trading hours, allowing investors to join the action during peak market periods. This timing match helps you catch real-time price swings and respond quickly to market news. 
• Wider Market Access: The nearly 21-hour trading window breaks down time barriers for global traders. European and American investors can now trade Indian equities during working hours without staying up all night. 
• Portfolio Growth Opportunities: Access to Indian markets allows investors to diversify their risk over more territories.
• Stronger Liquidity, Better Prices: More participants, both Indian and global, mean more trades. This leads to higher liquidity, which helps in smoother buying and selling. It also improves price discovery, so you are more likely to get fair, competitive prices.
• Regulatory Oversight: Gift Nifty is overseen by the International Financial Services Centres Authority. This provides investors with more security and confidence.

SGX Nifty vs GIFT Nifty: Key Differences

While GIFT Nifty replaced SGX Nifty, there are important differences: 

Can You Trade GIFT Nifty?

Retail investors in India cannot directly trade GIFT Nifty under the RBI’s Liberalised Remittance Scheme (LRS). While the scheme permits remittances up to $250,000 per financial year, remittance for trading in foreign exchange abroad is restricted. 

But overseas individual traders, who cannot access Indian derivatives due to regulatory restrictions, foreign institutional investors and global mutual funds, who hold Indian market exposure and want to hedge their portfolios, can trade it through brokers who are members of NSE IX. 

Final Thoughts 

GIFT Nifty is a game-changing move in India’s rise as a world financial leader. By shifting the trading location of important derivative contracts from Singapore to GIFT City, India has taken greater control of its capital markets and become a strategic hub for foreign investors.

With longer market hours, dollar-quoted contracts, and efficient access for international participants, GIFT Nifty redefines Indian market exposure without time zone constraints. As GIFT City itself continues to grow, GIFT Nifty is a testament to India’s intent, innovation, and willingness to define the future of global finance.

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