Hello, my wonderful traders! Stock investing has recently become a more frequent and well-liked way to increase wealth. The need to comprehend all the fundamental stock market terms has grown along with the increase in the number of people interested in stock investing. The term “Nifty” will frequently appear in financial news articles in newspapers or online news sources. These news stories frequently discuss how this platform’s points are rising and falling. Nifty is India’s stock exchange platform that assists investors in understanding how a company performs daily before making a large investment. Most people want to know more about another term. It is called SGX Nifty. Let us spend a little more time becoming familiar with the term Nifty, though, before moving on to understanding what SGX Nifty is. Read the blog to learn more about Nifty, Moneycontrol, and SGX Nifty.
What is Moneycontrol?
Moneycontrol is one of the best financial apps in India, with millions of financial traders and investors having downloaded it. One can access real-time updates on the financial market thanks to its flawless smartphone customization. This app provides the most recent news regarding the stock market and business world. Users can access live TV features to hear the most recent business news.
This mobile app makes financial portfolio management possible, which is very beneficial. All users can easily use this app because it works on various platforms, including Android, Windows, and iOS.
The Moenycontrol app includes information about a broad range of assets traded on the NSE, BSE, NCDEX, and MCX. Users can follow the most recent developments in various financial products, such as stocks, options, futures, mutual funds, currencies, and commodities. The “Best Mobile App for Business” award was given to the Moneycontrol app in 2017. It is another feather to its cap!
Features of Moneycontrol App
The Moneycontrol app is unique because of its numerous appealing features. A brief explanation of these features is provided below for readers’ benefit.
Top-notch navigation
Users can easily navigate through the app’s various sections, including the portfolio, real-time market information, stock drawer, stock pin, watchlist, etc.
Voice-enabled search options
The Moneycontrol app is built with voice search optimization, allowing users to avoid typing while looking for stocks, mutual funds, currencies, and other financial products.
Latest market updates
This app allows users to search for the most recent data on stocks, futures, options, and so on from the BSE, NSE, NCDEX, and MCX. It also offers the latest prices of products on Sensex, NIFTY, etc.
Moneycontrol provides dynamic and historical charts and detailed market statistics for futures, options, and stocks.
Portfolio management
The performance of stocks, mutual funds, and other financial products can be monitored while investors manage their portfolios using this app. It also offers the most recent news regarding every stock a user purchases.
Round-the-clock news services
The Moneycontrol app offers the most recent information on the stock market, industry, and economy. Users can access daily real-time news updates and interviews with influential figures in this industry.
This app also enables offline reading of news and articles, even when there is no active internet connection.
Text to Speech
Users of this application can listen to the news and important articles while traveling, thanks to one of its premium features.
They can use this feature to conveniently listen to articles rather than read them, saving time.
Customized watchlist
Using a watchlist, investors can keep track of all the stocks, mutual funds, currencies, and other assets they wish to invest in. Users of the Moneycontrol app can keep a personalized watchlist of all their preferred financial products.
Through this watchlist, one can keep abreast of all the most recent information regarding their preferred stocks, which will aid them in making wiser investment choices.
Forum message board
This financial application allows users to follow top board members and stay current on important topics. It will assist him in obtaining the best recommendations for which stocks are suitable for investment.
He can also get helpful advice to connect with the boarders and send messages. An investor can then more effectively manage his portfolio and invest in successful stocks that will yield a sizable return.
What is Nifty?
NSE indices own and manage Nifty, first introduced on April 22nd, 1996. Nifty is an index for the Indian Stock Exchange (NSE) platform, as was previously discussed. To let investors know how the companies are performing on the stock market, it represents 50 of the largest companies in India and presents their weighted average. It is one of India’s two leading stock exchange indices, the other being BSE SENSEX.
Nifty ranks the companies in a system that keeps the best-performing company at the top and lists the companies based on their stock market performance. Nifty provides investors with information about which of the top listed companies has the potential to perform well in the future so that they can make investments to maximize their profits.
Eligibility Criteria for NIFTY Index Listing
NIFTY is reconstituted every six months to stay current with the newest stocks and trends. The performance of stocks over the previous six months is considered, and the eligibility of a company’s shares is examined. A group of experts at NSE Indices Limited manages the NIFTY index.
This index advisory committee provides direction and knowledge regarding significant issues about equity indices. The index managers will consequently change the benchmark by removing or adding new or old stocks. Companies get involved with new additions four weeks before the reconstitution. The following requirements must be met for a listing to be accepted on NIFTY.
- As long as the company has a national domicile, it must be registered with the National Stock Exchange (NSE).
- The stocks of the company ought to be very liquid. Their impact costs are averaged to determine this. Impact cost is the cost of trading a single security relative to the index’s weight, as measured by the company’s market capitalization. With 90% of the sightings and analyses conducted on a portfolio worth more than 10 crores, the company’s impact cost should be less than or equal to 0.50% or lower for the next six months.
- The company’s trading frequency over the previous six months should have been 100%.
- The company ought to have an average market capitalization that floats freely. The market capitalization ought to be 1.5 times bigger than the largest index company.
- The Nifty 50 is open to any company with DVR shares, also known as shares with “Differential Voting Rights.”
How is Nifty Calculated?
The Nift 50 indexes are calculated using a market capitalization-weighted, float-adjusted formula. The index level displays the total market value of the shares that have been present for a specific time. Nifty’s base period began on November 3, 1995. The base value of the index is set at 1000, and its initial investment is $2.06 trillion. The index’s value is determined using the following formula:
Value of Index: (1000 * Base Market Capital) / Current Market Value
Value is calculated using a variety of methods in addition to the formula. Also taken into consideration are modifications to corporate practices like stock splits, rights insurance, and others. Since NIFTY is the standard by which all Indian equity share markets are measured, it regularly performs index maintenance checks. This guarantees that it is stable and functioning well enough to continue serving as a national benchmark index.
What is SGX Nifty?
The derivative, SGX Nifty, is traded on the Singapore Stock Exchange platform and is based on the Nifty index. This trade establishes a predetermined share price and lowers the risk associated with future investments. You should remember that, similar to how Indian Nifty trades on the NSE, which is the platform of the Indian stock exchange, the SGX nifty is the futures trade nifty in Singapore. The share’s price, however, is fixed. The agreed-upon price must be adhered to by both the buyer and the seller regardless of stock market fluctuations.
The SGX nifty has a significant role in the Indian stock market because it assists in predicting and observing the behavior of the Indian Nifty. After all, the Singapore Stock Exchange is the top stock exchange in India.
How is SGX Nifty different from Indian Nifty?
The SGX Nifty and the Indian Nifty are fundamentally different from one another because the former trades exclusively on the National Stock Exchange, or NSE, the Indian stock exchange platform, while the latter only on the SGX Nifty, a futures trade platform in Singapore, where the prices of stocks are predetermined to reduce future risk.
The contract size between the Indian Nifty and the SGX Nifty is another significant distinction. The SGX nifty does not require a minimum number of shares, but an Indian Nifty contract between a buyer and a seller must have at least 75 shares. As a result, every Indian nifty must contain shares, unlike the SGX nifty, which does not have a contract with shares.
As the busiest and only trading platform operating twenty-four hours a day in Singapore, SGX Nifty sees a lot of customers and trading activity. With the national exchange platform known as the Indian Nifty, this is not the case. These features of SGX nifty increase its profitability.
Impact of SGX Nifty on the Indian market
The SGX Nifty helps us anticipate and track the behavior of the Indian Nifty, as we have already discussed. The Singapore market opens about 2.5 hours before the Indian market, so there is also a time difference between the Indian Nifty and the SGX Nifty. This enables investors to monitor the SGX nifty to understand market fluctuations and see how the overall trading process is progressing. Investors can determine whether the Indian market will open with positive or negative results by keeping an eye on this. To gain a preliminary understanding of the Indian nifty and stock exchange platform, those who are hesitant to invest in the Indian market can do so in SGX. They also monitor the SGX nifty.
Even though it might be a practical way to assess the Indian market and assess your chances, not all results that these investors receive are accurate and dependent on the various economic factors in both countries. Since the economies of Singapore and India are very different from one another, this has a variety of distinct but significant effects on market behavior.
You cannot discuss one without bringing up the other because the Indian Nifty and SGX Nifty have an equal impact on one another’s behavior. Anyone who wants to start trading, like an expert on the stock market, must first understand and be familiar with Nifty and SGX Nifty terms. Many other financial terms are commonly used and have important roles in the stock market.
Advantages
Increases the number of foreign investors in India’s derivatives market. India and Singapore are geographically close. Better connectivity and shorter delays between the two exchanges are guaranteed. It is a good substitute for investors who do not have access to Indian markets. Especially if they want to transact in US dollars. The SGX Nifty’s extended business hours provide more leverage for transactions, particularly for hedge funds. The 16-hour time window improves market participants’ ability to make decisions by allowing them to view Indian markets in light of overnight developments on Wall Street.
Disadvantages
The SGX Nifty is more volatile than the NSE Nifty, influenced by global economic cycles and political events. Citizens of India cannot trade in SGX Nifty contracts. The Indian stock market has a six-and-a-half-hour trading window between its opening at 9:15 AM and closing at 3:30 PM. The SGX Nifty, on the other hand, trades on the Singapore Stock Exchange from 6:30 AM to 11:30 PM IST or for 16 hours each day. The SGX’s extended trading hours ensure that the effect of major world events on the stocks traded there is more pronounced. As an alternative to NSE Nifty, traders also use the SGX Nifty futures to make quick decisions.
Recent Developments
To operationalize “NSE IFSC-SGX Connect,” which will bring Gujarat International Finance Tec-City (GIFT) participants and foreign participants together to create a larger liquidity pool for Nifty products in the GIFT City, the NSE and SIGX have entered into a formal agreement. SGX is introducing single-stock futures. With many protectionist measures, the SEBI hopes to prevent foreign exchanges from setting prices for the Indian Market and SGX from gaining market share.
Conclusion
SGX Nifty enables traders to enter the Indian market from any location in the world. The information, news, and analysis needed to make wise trading decisions are provided by Moneycontrol. They all work together to improve market participants’ overall trading experience and shape investment strategies in India.
