Nifty 50 vs SGX Nifty Comparison : Is it Right?

NSE Nifty 50 is a broad market index. So, it is considered as a reflection of the entire stock market of India.

SGX Nifty is a derived index and it is based on NSE Nifty 50.

Strictly speaking, SGX Nifty is a Nifty 50 Futures Index.

SGX Nifty, also known as Singapore Nifty, is an index that tracks the performance of the Nifty 50 index of the National Stock Exchange (NSE) of India. It is calculated and published by the Singapore Exchange (SGX), which is the main stock exchange of Singapore. The SGX Nifty is considered an indicator of the Indian stock market, and it is widely used by market participants to gauge the performance of the Indian market. The index is calculated using the free float market capitalization weighted methodology, which means the level of the index reflects the total free float market value of all the stocks in the index relative to a particular base period.

The SGX Nifty is considered a good indicator of the Indian market, especially for international investors who want to access the Indian market through the SGX, it is also widely used as a benchmark for financial products such as derivatives and index funds which are based on the Nifty 50 index.  

Since Singapore opens its stock market before India does, it is treated as an indicator of how Nifty futures behave.

Speculators and traders try to take SGX Nifty value to predict NSE Nifty to certain, if not complete, accuracy so that they can at least predict the direction of the market moment at the opening bell.

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