Gift Nifty (often written GIFT Nifty) is a USD-denominated derivative contract based on the Nifty 50 index that’s traded on the NSE International Exchange (NSE IX) located in GIFT City, Gujarat, India. It effectively replaced the earlier SGX Nifty futures that were traded on the Singapore Exchange and shifted that volume into India’s jurisdiction as part of financial market reforms.

📌 What Gift Nifty Is

• Underlying: It’s based on the Nifty 50, India’s flagship stock index representing the 50 largest and most liquid companies on the National Stock Exchange of India.

• Contract Type: It’s a futures contract (a derivative) — you’re trading an expectation of where the index will be in the future rather than owning the actual stocks.

• Currency: Denominated and settled in US dollars (USD), making it attractive for international investors and reducing direct exposure to Indian rupee volatility.

• Trading Venue: Traded on NSE IX within the International Financial Services Centre (IFSC) at GIFT City, which has special regulatory and tax frameworks.

🕒 Trading Hours & Global Access

• Extended Hours: Gift Nifty trades for most of the day — almost 21 hours spread across two sessions — overlapping Asian, European, and U.S. markets.

• This near-round-the-clock trading lets international traders respond to global market moves even when India’s domestic market is closed.

🧠 Why Gift Nifty Matters

For Global Investors:

• USD denomination & longer hours make it a gateway for overseas traders to access India’s equity market sentiment without dealing with INR settlements directly.

• It consolidates what was previously offshore trading (SGX Nifty) into India’s own regulated financial center, improving price discovery and liquidity.

As a Market Indicator:

• Because Gift Nifty trades before the Indian markets open and across global sessions, many traders watch its movement as a pre-market indicator — giving a sense of how the domestic Nifty 50 might open.

🧑‍💼 Who Can Trade It

• It’s primarily aimed at foreign institutional investors (FIIs), non-resident Indians (NRIs), and other qualified offshore participants through brokers with NSE IX access.

• Domestic retail investors usually cannot trade Gift Nifty contracts directly through regular Indian brokerage accounts due to regulatory restrictions.

📈 Recent Developments

• Gift Nifty has seen rapid growth in activity, for example breaking monthly turnover records (over $100 billion in May 2025), highlighting its increasing role in global derivative markets.

• New contract formats, such as daily expiries for foreign investors, have been introduced to boost participation and align with global trading practices.