Does GIFT Nifty impact the Indian markets?

GIFT Nifty Significance: GIFT Nifty is a rebranded version of SGX Nifty which was the derivative of the Nifty index. SGX Nifty, which used to be a futures contract that was traded on the Singapore Stock Exchange, has been used by traders and investors for years to anticipate Nifty's opening and tone of the Indian market. The SGX Nifty was officially rebranded as GIFT Nifty, with trading being shifted to the NSE International Exchange (NSE IX) in Gujarat's GIFT City, on July 3, 2023.

Simply put, after the transition, the US Dollar-dominated contracts of Nifty futures started trading on the NSE IX in the GIFT City SEZ, instead of the Singapore Exchange. This transition came after regulatory approvals from the Monetary Authority of Singapore (MAS) and the International Financial Services Center Authority (IFSCA).

The umbrella brand GIFT Nifty includes 4 derivative contracts: GIFT Nifty 50, GIFT Nifty Bank, GIFT Nifty Financial Services, and GIFT Nifty IT derivative contracts. The trading hours at SGX Nifty used to be between 6:30 am IST and 3:45 pm IST. However, after the transition, GIFT Nifty will be trading from 6:15 am IST to 2:45 am IST of the next day with a 25-minute break between 4:00 pm IST to 4:25 pm IST. 

Effectively it would trade approximately 16 hours a day so that the effect of all other global markets will be captured in it. This early opening and late closing helps FII & other institutions capture the effect of all global markets in it.

SGX and Nifty have a 50-50 partnership in GIFT Nifty. While SGX will handle the clearing, the trading of futures and options will take place in GIFT City.
 

Reason behind transition
 

SGX Nifty's rebranding as GIFT Nifty made a significant shift in global trading. The CEO of NSE IX described it as a "watershed moment" for the country as it introduced an international contract previously traded outside India.
GIFT City aims to compete with international financial centres like Dubai, Mauritius, and Singapore. At the launch of GIFT Nifty, Tapan Ray, MD & Group CEO, GIFT City, said, “GIFT City is becoming a leading global financial hub and destination of choice for investors across the world, with comprehensive tax structures, ease of business and world-class infrastructure.”
“Gift Nifty will help India to become a net exporter of financial services and achieve the honourable Prime Minister’s vision to onshore the offshore,” Ray had said.

GIFT Nifty: Period, high, low and average