Global indices and SGX Nifty- what Indian investors should know?

Global indices and SGX Nifty- what Indian investors should know?


We all have heard Global Indices and SGX Nifty, but what? Some examples of global indices are the Dow Jones, FTSE, DAX, CAC, Nikkei, Nifty, Sensex, and so on. SGX Nifty means to figure out what it does to the Indian stock market. You must have heard the hour-long talk about SGX Nifty and how it affected the Nifty opening before the Indian stock market opened. In this post, we will discuss SGX Nifty and Global Indices in detail and see how it affects the Indian stock market.


What are global indices?


Global indices are a benchmark to assess strength or weakness in the market. Indexes are created by selecting a group of liquid, valuable stocks from all listed companies. How these groups of stocks or portfolios move together affects global indices. If global indices are going up, the markets are doing well. If they are going down, the markets are doing.


What is SGX Nifty, and How does SGX Nifty Effects the Indian Market?


SGX is an abbreviation for Singapore Stock Exchange, and SGX Nifty is a derivative of the Nifty Index. This trade sets a share’s price in advance and eliminates any future investment risk on the Singapore Stock Exchange platform. The Indian Nifty is traded on the Indian stock market NSE, while the Singaporean SGX Nifty is a Futures trade where the share price and outcome are already known.


The buyer and seller must commit to that predetermined price regardless of future stock market changes. Singapore Stock Exchange is now one of India’s most important stock markets. It helps predict and track the behavior of SGX Nifty Indian Nifty and is also a vital part of the Indian stock market.


How does SGX Nifty Effects the Indian Market?


There is a time difference between Indian Nifty and SGX Nifty. The SGX market opens 2 hours and 30 minutes before the Indian market. There, investors watch the SGX Nifty figure out how the market will open. Investors look at how volatile the market is to figure out if the Indian Nifty market will open with more positive points or more negative points.


But the point is that whatever information they get is not definitive due to the economic factors that persist in both countries. Each country’s economic and global factors determine the market’s behavior. India and Singapore have different economic structures that influence the country’s markets.


You might be wrong if you think the pandemic hasn’t changed the market or the financial markets. If the Indian Nifty closes, traders and analysts will only be able to look at the SGX Nifty to see how the world’s financial markets are changing.


Due to India’s sharp drop in economic growth, Indian Nifty has started offering premiums and discounts on opening prices on this platform to make it easier for traders to invest and trade.


Can SGX Nifty predict the Nifty?


One of the main differences between SGX Nifty and Indian Nifty is that SGX Nifty is a futures trading platform in Singapore. Stock prices are set in advance to avoid future risk, and Indian Nifty only trades on the National Stock Exchange in India (NSE) platform.


Another critical difference is the contract size of Indian Nifty and SGX Nifty. A contract between buyer and seller in Indian Nifty requires a smallest of 75 shares, but in SGX Nifty, it is not necessary. It means that SGX Nifty has no contracts with stocks, but every Indian Nifty must consist of shares.


SGX Nifty sees a large number of clients and trading activity. All this is because it is the only trading platform in Singapore that works for sixteen hours a day. These salient features of SGX Nifty make it more profitable.


Which Indian stocks are listed in SGX Nifty?


It comprises the weighted averages of the 50 largest companies in India. It helps investors understand how companies are doing on the stock market. SGX is one of India’s two leading stock exchange indices, the other being the BSE Sensex.


To better understand this platform, you should know that every country has its stock exchange platform. Before putting a lot of money into a company, investors can find out how well it does every day on India’s Nifty Stock Exchange.




This article explains SGX Nifty and its impact on the Indian stock market. SGX Nifty can be an ideal option for investors and traders who want to trade in the Indian equity market but cannot do so. The main advantage of SGX is that SGX Nifty has a longer trading time than the Indian equity market. Omit, both platforms are essential because they help traders understand each other’s behavior as soon as the market opens.

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