What it means
It replaced the Singapore-traded SGX Nifty in July 2023. It trades from 6:30 am to 3:40 pm and again from 4:35 pm to 2:45 am India time, so it is open while Indian exchanges are shut. Traders watch it before 9:15 am for a hint of where the Nifty may open.
In practice
GIFT Nifty is the early signal. It trades through the US session and the Asian morning, so by 9 am in India it already reflects what happened in global markets overnight. A reading well above or below the previous Nifty close points to a gap at the open.
It is aimed mainly at foreign investors, who trade it in dollars.
What to watch for
It is a guide to the open, not to the day: a gap it predicted is often filled or reversed in the first hour. It also trades at a small premium or discount to the index itself, so compare it with the Nifty futures price, not with the index level.
Related terms
4 terms- Nifty 50The benchmark index of India's National Stock Exchange, tracking 50 of the largest companies listed on it.
- Indian market hoursIndian stock exchanges trade from 9:15 am to 3:30 pm India time, Monday to Friday, with a pre-open session from 9:00 am.
- Futures contractA standardised agreement to buy or sell something at a set price on a future date, traded on an exchange.
- GapEmpty space on a chart where price opened away from the previous close and nothing traded in between.