GIFT Nifty, formerly SGX Nifty, may become tradeable 22 hours a day from July 3

Currently, trading in SGX Nifty takes place for 16 hours between 6:30 am IST to 10:30 pm IST.

The new avatar of SGX Nifty, GIFT Nifty, is likely to be available for trading 22 hours a day from July 3 when all dollar-denominated Nifty derivatives contracts will be entirely traded from NSE IFSC at GIFT City.

The proposal being considered is to allow trading in GIFT Nifty — dollar-denominated Nifty futures contracts — from 4 am IST till 2 am IST the following morning, a person part of the discussions told Moneycontrol.

Currently, trading in SGX Nifty takes place for 16 hours between 6:30 am IST to 10:30 pm IST. Traders closely track SGX Nifty as an early indicator of where the Indian market is likely to open.

Many foreign investors, who want exposure to India, but do not trade frequently, use SGX Nifty contracts.

The extended trading hours will allow more global investors, mainly from the US to trade in dollar-denominated Nifty futures contracts, adding to the liquidity.

“Now that the settlement of the trades will take place at GIFT City, it is felt that trading hours can be extended,” the person said.

The NSE did not respond to a query on the matter.

“With instances of financial terrorism on the rise, it is very much possible that some hostile state wanting to destabilise India’s financial markets may do that by hammering Nifty futures before the markets in India open. Till now, it was not possible to respond to such an attempt before the market here opens, but after July, any such eventuality can be tackled better,” the person said.

On June 30, 2023, all open positions in SGX Nifty will automatically shift to NSE IFSC as part of the liquidity switch.