SGX Nifty: All information under one roof!

SGX Nifty is Nifty Futures contract, which trades on Singapore Stock Exchange.  It starts trading early morning, approximately 3 hours before the Indian market, and trades for 16 hours on Singapore Stock Exchange while in comparison, Nifty trades for 6 hours & 15 minutes in the Indian Stock exchange, i.e. on NSE & BSE.   

This is an attractive product for investors, who are interested in trading on Nifty but is not able to access the Indian market. Some hedge fund managers, who have a big exposure in the Indian market, find SGX Nifty, a good alternative to hedge their positions.  

The contract size of SGX Nifty is completely different from that of Nifty. We have 75 shares in every Nifty contract lot, whereas, in SGX Nifty, one does not have a standard contract size. SGX Nifty is denominated in terms of US dollars. For example, if SGX Nifty is trading at 15,000, the contract size of SGX Nifty will be 15,000* US$ 2, that is, US$ 30,000.  

Now let’s discuss in terms of value. If someone has purchased one lot of Nifty Futures at the rate of 15,000 then, the traded value is 15,000*75, that is, Rs 11,25,000. Similarly, if someone has purchased SGX Nifty then, the traded value is 15,000*US$2, that is, US$ 30,000 and in rupees term, it would be US$ 30,000*72.45=Rs 21,73,500, which is nearly double the traded value of Indian Nifty.   

The above chart is showing the price movement of SGX Nifty since March 2020. The minimum fluctuation of the contract is one & a half of the index points, equivalent to one US dollar per contract.   

There are two nearest months future contracts that are available for trading. Apart from these contracts, March, June, September and December months of 1-year cycle contracts are also available for trading. These future contracts will expire on the last Thursday of the contract month. If the last Thursday of the month is a holiday in NSE Exchange then, the preceding day, on which, the underlying market is open for trading shall be the last trading day of these contracts. The final settlement price is the official closing price of Nifty 50 index, which is derived based on the average weighted prices of the individual component stocks of the index during the last 30 minutes of the trading. The official closing price will be rounded to two decimal places.   

On Friday, SGX Nifty was trading at 14,524.50, down by 655.50 points or 4.32 per cent. The index opened at 14,960.50 levels and hit an intraday high of 14,976 and a low of 14,518.50 levels. The intraday volume was 1,21,277 while the open interest was 2,07,784.