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SGX NIFTY and Its Impact on Indian Markets




In the world of finance, it is easy to find yourself confused between technical terms and information. Sometimes, it certainly gets too much. And one such topic is ‘NIFTY AND SGX NIFTY’.

Hello readers! Hope the markets are blessing you with profits. If you trade the Indian markets or follow them, at some point, you must have heard of ‘NIFTY ‘and ‘SGX NIFTY’. In this blog, we will cover what these terms mean and how one affects the other. So, buckle up.

What is NIFTY

NIFTY is a stock market index provided by the National Stock Exchange (NSE). It comprises of 50 largest companies listed on the NSE spanning various sectors of the economy. Shares per contract were reduced from 75 per contract to 50 after the expiry of June 2021 contracts.

A company needs to fulfill certain requirements to be eligible for listing on NIFTY. NIFTY then assesses a company’s performance and puts them in a ranking structure. A company’s performance decides its position, the higher the performance, the higher the ranking.


SGX NIFTY is nothing but a derivative of NIFTY trading on the Singapore exchange. SGX stands for Singapore Stock Exchange, i.e., the name of the exchange. It is a futures-only contract in which price is set prior to execution and both buyer and seller need to abide by it. This reduces the risk due to rapid market fluctuations.

Differences between NIFTY and SGX NIFTY

  • The contract size of Nifty is 50 shares per contract whereas for SGX Nifty, there are no fixed shares per contract.
  • SGX is traded in US dollars while Nifty is traded in INR (Indian Rupee).
  • SGX trades for more than sixteen hours per day, from 6:30 am to 2:45 am IST. This occurs in two sessions called the T session and the T+1 session.

T session operates from 6:30 am to 3:40 pm while the T+1 session is from 4:10 pm to 2:45 pm IST. This is 2.5 hours ahead of the Indian markets.

  • Indians are not allowed to trade in SGX Nifty.

Impact on the Indian Market

SGX Nifty is the derivative version of NIFTY which trades on the Singapore Stock Exchange. It is a futures-only contract which unlike NIFTY has no minimum number of shares per contract and is traded in US dollars.

We understand this much about SGX Nifty until now, but it is also important to understand how it impacts the Indian markets. Why is it even considered and its importance in everyday trading? Let us begin.

There are multiple factors why SGX Nifty is given so much importance.

  • Time-difference– SGX starts the trading hours at 6:30 am IST, which is a 2.5-hour head start compared to Indian markets. This means the same contracts are now being traded earlier elsewhere. This gives Indian investors and traders a brilliant opportunity to predict the Indian markets based on how certain news affected the same contracts on SGX.

This gives market participants an idea of the direction of market opening, whether it will be positive or negative.

  • Trading hours – SGX trades for more than 16 hours per day, which makes it more prone to global news. This news is bound to impact Nifty, but the direction and extent of the news can be observed. This gives participants time to make decisions for new trades or adjust their open positions.
  • Greater volume –Owing to the trading time SGX Nifty witnesses much greater volume compared to the Nifty daily. The 16-hour trading period means people from all over the world interested in Indian markets can participate at their convenience. This high traffic results in significantly greater volumes.

This greater volume ensures a better understanding of the overall market sentiment. And this enables Indian traders and investors to better predict the movement and take decisions accordingly.

Should you trade based on SGX Nifty?

SGX Nifty is used by investors to keep track of the impact caused by global events. Its greater number of trading hours makes it more prone to fluctuations. This approach certainly gives investors a better understanding of market sentiment, however, decisions cannot entirely be made based on this. Many factors can lead to a change in market sentiment which may have negligible influence on Indian markets.
Geopolitical issues that affect Singapore can lead to reduced interest and lower volumes. These factors can be miles away from affecting Indian markets. A decision based entirely on SGX Nifty in this case can wreak havoc and lead to significant losses.

One must also keep in mind the internal factors of the country. Any change in the political, economic, or other situations can stir the stock markets, however, that may not affect the other countries at all.

Using SGX Nifty for observation and prediction is good and is common market practice. However, one must refrain from making decisions purely out of SGX Nifty. A thorough analysis of multiple factors is a must.

Hope this cleared your doubts on the topic. Keep reading for more.


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Finance World

Why Muthoot Finance is not affected by the small cap and mid cap fall?



This week, if you’ve been keeping an eye on the stock market, you might’ve noticed something unusual. While the small cap and mid cap markets took a serious dive, Muthoot Finance seemed to just avoid it, falling by a mere 2%. So, what’s their secret?

What is the business of Muthoot Finance?

First up, Muthoot Finance has a strong foothold in gold loans. Now, why does this matter? Well, when other investments seem risky, people tend to fall back on gold because it’s considered a safer bet. With gold prices staying high, Muthoot’s gold loan business is like a stable ship in a stormy sea.

Muthoot Finance target price by Kotak

Kotak Institutional Equities is pretty optimistic about Muthoot, recommending a “buy” with a target of Rs 1,500. They think Muthoot is in a prime spot to grab a bigger slice of the gold loan market. Plus, with some Non-Banking Financial Companies (NBFCs) hitting a rough patch, Muthoot has a clear ground to expand and grow further. Unlike NBFC, Muthoot has a strong ground presence with offices and branches, they have physical repo with their customers, unlike NBFC who operate from AC offices.

New Friends and New Frontiers

Muthoot isn’t just sitting pretty with its gold loans; it’s also making moves. It teamed up with Evfin to finance electric two-wheelers across India. And there’s more – Muthoot FinCorp has brought Veefin Solutions on board to kick off supply chain finance operations. This means they’re planning to lend a hand to small and medium businesses, helping them keep the wheels turning. So, its a great news that Muthoot is expanding into fields that are not dependent on gold loans alone.

Spreading Their Wings

Muthoot Microfin, a part of the Muthoot Group, is pushing into new territories too. They’ve just set foot in Telangana and have their sights set on Andhra Pradesh next. This move is about bringing more people into the financial fold, especially in places where banking services might be hard to come by. This gives an edge to Muthoot over banks and NBFC.

Are you wondering whether to invest in Muthoot Finance or Manappuram Gold? Take a look at this:

So, What’s the Deal?

While the market’s mood swings have sent some companies into a pit, Muthoot Finance has managed to stay stable. Thanks to its focus on gold loans, strategic partnerships, and expansion plans, it’s not just surviving; it’s set to thrive. So, while the rest of the market might be catching its breath, Muthoot is marching on, steady as ever.

Keep following us for more such latest news on TradeAlone.

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Finance World

Infibeam Avenues Ltd expands into the US Market with an Acquisition



Hello, digital pioneers and fintech enthusiasts! Let’s dive into a groundbreaking announcement for Infibeam. Infibeam Avenues Ltd, an AI-powered financial technology, is embarking on an exciting journey by acquiring a 20% stake in XDuce. XDuce is a mastermind in enterprise Application and AI development based in the United States. This bold move involves an investment of USD 10 million. This also marks a significant milestone in Infibeam Avenues Ltd’s global expansion narrative.

XDuce: A Hub of Innovation

Nestled in the heart of New Jersey, XDuce boasts a team of over 150 software developers. They’re a team behind the curtain for marquee clients like Bank of America and Morgan Stanley, to name a few. XDuce’s expertise in business application implementations and transformation is nothing short of legendary in the financial and insurance sectors of North America.

A Fusion of Giants

So, what happens when Infibeam Avenues Ltd and XDuce comes together? Infibeam Avenues Ltd wants to merge it’s AI Solutions and CCAvenue Payments business into the network that XDuce has built. This collaboration is about expanding business footprints, revolutionizing how AI-driven technologies are employed in fraud detection, authentication, and risk identification in the financial sector of the US.

Redefining Financial Technology

Imagine a world where transaction fraud is no longer a looming threat, thanks to state-of-the-art AI technologies. That’s the vision Mr. Jay Dave, CEO of XDuce, and Mr. Rajesh Kumar SA, CEO of Phronetic.AI, share. By integrating PhroneticAI abilities with XDuce’s solutions, they will offer businesses and consumers in the US with security and efficiency.

The Road Ahead

According to Mr. Vishwas Patel, Joint Managing Director of Infibeam Avenues Ltd, international business currently contributes less than 10% to the company’s total revenue. But with strategic moves like this, they’re aiming for international business to soar to 30% of total revenue in the coming years.

Infibeam Avenues Ltd at a Glance

Infibeam Avenues Ltd is at the forefront of offering digital payment solutions and enterprise software platforms across the globe. With a transaction worth INR 4.5 trillion (US$ 54 billion) processed in FY23, and a client base of over 10 million. Spread across digital payments and enterprise software platforms, they’re leading digital revolution.

Wrapping Up

The strategic investment in XDuce is a bold step towards Infibeam Avenues Ltd’s vision of global expansion and innovation.

Stay tuned with Tradealone, as we continue to follow this exciting journey of Infibeam Avenues Ltd. Stock price for Infibeam closed 7% up today. We also see a continues profit growth for Infibeam Avenues over the past 4 years. Although, we cant recommend a buy or sell call for the stock, however we feel this stock deserves your attention.

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Finance World

Satin Creditcare Expands its Reach by entering Telangana and Andhra Pradesh, stock has doubled so far this year



In a country where financial inclusion remains a major yet challenging goal, the expansion of services to underbanked regions marks a significant step forward. Satin Creditcare Network Limited (SCNL), a leading name in microfinance, announces its strategic entry into Telangana and Andhra Pradesh. This move not only amplifies SCNL’s presence to 26 states and union territories across India but also underlines its commitment to empowering the economically marginalized communities with vital financial services.

A Leap Towards Nationwide Financial Inclusion: SCNL’s mission to drive financial inclusion is more than just a business expansion; it’s a pledge to reach the unreached. The opening of two new branches in Telangana (Warangal and Huzurabad) and one in Kadiri, Andhra Pradesh, is a testament to SCNL’s dedication to making financial services accessible to all, especially in rural and semi-urban areas where banking facilities are scarce.

Why Telangana and Andhra Pradesh?

The choice of Telangana and Andhra Pradesh for SCNL’s latest expansion is strategic. Both states have shown promising economic growth yet house significant populations that lack access to basic financial services. By stepping into these states, SCNL aims to fill this gap, offering microfinance solutions that can serve as a catalyst for economic empowerment and sustainable development. Moreover, Telangana is a fast growing hub for Pharma industry as the state capital Hyderabad leads the way.

SCNL’s Blueprint for Empowerment

SCNL’s approach to empowerment through financial inclusion is holistic. Focused on rural India, with 76% of its operations dedicated to rural communities across 97,000 villages, SCNL is not just providing financial services but is also contributing to the rural economy’s growth. This expansion is a stride towards enabling access to credit for the underserved, thereby fostering an environment of economic resilience and growth.

A Message from the Leadership

Mr. HP Singh, Chairman cum Managing Director of SCNL, remarks, “Our expansion into Telangana and Andhra Pradesh is a significant milestone in our journey towards a financially inclusive India. It’s not merely about increasing our geographical footprint; it’s about touching lives, empowering the marginalized, and contributing to the nation’s economic fabric. We’re here to make a difference, one individual, one community at a time.”

Ashirvad Microfinance is a fast growing company as well. Check it out if you are interested.

Beyond Expansion – A Look at SCNL’s Innovations

SCNL’s innovations extend beyond traditional microfinance. The institution’s portfolio includes loans to MSMEs, affordable housing loans through its subsidiary Satin Housing Finance Limited (SHFL), and the commencement of MSME business through Satin Finserv Limited (SFL). These initiatives demonstrate SCNL’s commitment to diversifying financial solutions that cater to various needs of the underserved.

The Road Ahead for SCNL

As SCNL carves new paths in Telangana and Andhra Pradesh, the future looks promising. This expansion is not just about growth but about deepening the impact of financial inclusion across India. With continued innovation and a steadfast commitment to its mission, SCNL is poised to create significant strides in empowering communities and fostering economic development across the country. Moreover, the stock price for Satin Creditcare has almost doubled in the last one year.

Conclusion: SCNL’s expansion into Telangana and Andhra Pradesh marks a new chapter in its mission to facilitate financial inclusion across India. By reaching out to the economically marginalized sections of society, SCNL strengthens its role as a catalyst for economic empowerment and sustainable development. As we watch this journey unfold, the prospects for a financially inclusive India appear brighter than ever. Despite that we do not see any positive signs from the revenue and profit growth of the company over the last 5 years. Thus, we feel that investors must be cautious while investing here.

Remember that microfinance companies also face competitions from the major banks. However, as this move is towards uncharted regions of Telangana and Andhra, we do not think that the banks would pose any risk to Satin Creditcare.

Call-to-Action: We invite you to join the conversation: How do you think SCNL’s expansion will impact financial inclusion in Telangana and Andhra Pradesh? Share your thoughts and insights in the comments below. Let’s discuss how financial empowerment can transform lives and communities. Also, please follow Tradealone for more such latest updates.

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