SGX Nifty is an Indian currency traded in Singapore Stock Exchange. Whenever you want to define the direction and progress of the Indian Stock Exchange, the first pointer is always the SGX Nifty. The fact that Indian and Singapore are in the same continent makes it easy to trade. Also, Indians have an easy time trading because SGX Niftyis available in the mid-morning hours of Indian time. It is convenient for the locals to trade and interact with Singapore stock.
SGX is a reliable starting point for Indian Stock Exchange because of the flexible and long trading hours. Unlike the Indian Nifty trades that are only available for six and a half hours, SGX is open for trading up to 16 hours every day. The trading time is specified from 6:30 am to 11:30 p.m.
What is SGX Nifty?
SGX is an initial for Singapore Stock Exchange. The world Nifty is derived from the index trading as per the Singapore exchange rate. It is a channel for investors who are not active in the Indian market but are interested in familiarizing with the Indian trade mechanisms.
The direct interaction between Singapore and Indian has a significant effect on the economy of the two countries. Since top countries in world economy allowed share trading as part of globalization, economic changes in one country directly influence another country. The stock prices of India for instance, are dependent on the performance of Singapore. Being in the same continent enhances the bond hence ripple effect on any aspect of the economy. In this case, the rate and performance of SGX Nifty are dependent on Indian Nifty. On the other hand, the Indian market is dependent on the direction offered by SGX Nifty live, which is set at the beginning of every working day.
NSE and SGX Nifty Volatility
While the two operate on the same environment and almost the same rates, the Indian Nifty is less volatile as compared to the Singapore Nifty. While the performance of each can be related to the NSE, factors that influence SGX volatility have little to do with NSE trading. The Nifty has little or no effect on the NSE because of the time difference. While the SGX Nifty opens way earlier than NSE, a huge percentage of traders wait for NSE to open before engaging in any trade with respect to SGX Nifty. If there is any effect, it could be vice versa, on the SGX Nifty.
Nevertheless, the stock exchange rate depends on politics among other aspects in a nation. Trends determine whether the stocks will rise or fall. Also, international market performance has a significant influence on NSE performance.
So How does SGX Nifty affect NSE share market?
The wide trading period for SGX Nifty provides enough time for different kind of investors. SGX Nifty still runs even when the Indian market is closed because there is a direct link with the Singapore Stock Exchange. There is a possibility of the markets to introduce tracking system that hints on the direction of the Asian market hence determine suitable times for trading. However, the cues will only be effective for traders familiar with the continent’s market.
SGX Nifty chartis not only the first indicator but a reliable means of investing in the Asian stocks. There is a hint on direction of the market every morning at 8:00 am when the Nifty becomes active; this is consistent throughout the week. SGX is also the main trading channel that occurs in Singapore; the economic performance in the two Asian countries is dependent on Nifty postings.
Whether SGX Nifty has an impact on NSE or not is still a matter of debate. Some experts argue that a rise in SGX Nifty is always in correspondence to rise in NSE; while there are statistical proofs on this, nothing beats world news in influencing stock rates. First, traders wait for NSE to open every morning before they trade with SGX Nifty. Secondly, SGX Nifty operates based on hints from the Indian Nifty; the performance of Indian Nifty determines the rate for SGX. Indian Nifty is dependent on local and international factors including political news from across the world. Considering it is the main determinant of SGX nifty, there is no effect on NSE performance.
Effects of Global markets on NSE
Indian is not immune to local and global factors. Just like all other stock exchange in the globe, the Indian Stock Exchange is susceptible to highs and lows whenever there is a major shift in the political environment. Even anxiety in a country can significantly affect the rating of stocks. The NSE market is dependent on the top world economies; Europe, American, and Asia. Performance of stock exchange in these continents determines the number and significance of bids placed every day.
No investor trades blindly; the first consideration is on international stock exchanges; performance of the Asian, American, and European stock exchange markets influence the number of purchases. While traders might be operating locally, a matching trend for traders in different locations on the globe influence international markets.
Therefore, the NSE focuses on international stock exchanges like the NYSE, which have a significant impact on the stock exchange.
Contract settlement
SGX Nifty priceis solely dependent on Indian Nifty as per the Indian Stock Exchange ranking on NSE. Unlike the Indian market, the Singapore Stock Exchange allows more hours for investors to place their bids; trading can go on even past the market hours.
One of the main reasons SGX Nifty live chart is considered an indicator of Indian market every morning is because of the long trading hours. While the Nifty is available to investors in India and Singapore, it is influenced by NSE; meaning it is affected by the overall performance of international markets. Availability for 24 hours enhances its effect on the Indian market.