SGX Nifty & its importance:
SGX Nifty or popularly known as Singapore Nifty and is a mechanism by virtue of which an individual has the ability to take a position in the Singapore Exchange on Futures contracts. The point to note here is that Futures contracts settlement is based on the NIFTY settlement price in the Indian stock exchange NSE and this is where it makes the difference where by following the SGX, one knows how the Indian Nifty index is going to open in our country on next trading day. Another important aspect is that trading time on SGX allows for 24 hour trades via after market trades, investors can hedge the bets all the time. Above all reasons make it important for traders to track this market as this market is traded even during the time that our markets are closed. As a net result a number of traders track this market to know how the Indian indices will open tomorrow.
Moreover international investors based out of Singapore has the flexibility of betting on Indian markets while not having to setup or register the entity with the Indian authorities and they need not get into the legal hassles or redtapism in India.
SGX - Singapore exchange :
No doubt Singapore exchange is the leading exchange of Asia which allows a large number of investors and traders to take positions in different products based on the futures which are traded on the exchange. This exchange boasts of allowing trading in number of other exchanges to include FTSE China A50 index,MSCI Asia , MSCI Honkong ,MSCI Singapore , MSCI Taiwan, Nikie 225 , Strait Times etc. Thus a FII is able to take positions in all major indices while being in Singapore. This index appears to be a blessing in disguise for all those looking to trade in Asian indices without getting into any legal hassles or voluminous paperwork.