Data from the NSE IX show that July figures were higher than preceding months. June had witnessed 1.22 million contracts traded with a turnover of close to $32 billion.
Operations at GIFT Nifty have completed a month, which witnessed 1.47 million contracts traded, with turnover of more than $57 billion. The exchange on July 25 recorded its highest single-day turnover of $12.4 billion, with 314,921 contracts having been traded. Data from the NSE IX show that July figures were higher than preceding months. June had witnessed 1.22 million contracts traded with a turnover of close to $32 billion.
“July was a month of market uptrend. The indices witnessed strong rallies and foreign portfolio investment flows were also positive, which added to the market flavor. “Further, the GIFT City model also attracted investors, leading to higher flows,” said Kranthi Bathini, head of equity strategy at Wealth Mills Securities.
The months of May and April had seen 978,892 and 870,391 contracts traded, recording turnover of $18.41 billion and $18.02 billion, respectively. Earlier known as the SGX Nifty, the exchange was rebranded as GIFT Nifty starting July 3. All derivative contracts, to the tune of $7.5 billion, were shifted from Singapore to the NSE International Exchange at GIFT City. Dollar-denominated contracts of Nifty futures were also shifted to the NSE IX, and would cease trading on the Singapore Exchange, or the SGX.
“After transactions were shifted from Singapore, overall tax benefits, such as tax on transactions and STTs, go to the Indian government, which are encouraging higher participation. “This is the biggest advantage,” said Chandan Taparia, head (technical & derivatives research), Motilal Oswal Financial Services.
The NSE had, in an earlier statement, said the numbers were a reflection of growing participation from global investors.The contracts are accessible for 21 hours, spanning across market hours in Europe, the US, and Asia-Pacific.Trading at the GIFT Nifty begins at 6:30 am and remains open till 3:40 pm. The second session starts at 4:35 pm and goes on till 2:45 am, targeting investors from the US and Europe.
The GIFT Nifty essentially provides access to GIFT Nifty50, GIFT Nifty Bank, GIFT Nifty Financial Services, and GIFT Nifty IT derivatives at the international exchange. The stock exchanges that operate out of the GIFT City are permitted to trade in securities of any foreign currency, but not the rupee. The NSE IX allows trading members registered in India or overseas to set up shops at the IFSC via a subsidiary or branch. They can trade in GIFT Nifty products on behalf of clients by getting a membership of the NSE IX.
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