Gift Nifty

GIFT Nifty is linked to the Nifty 50 index, which tracks a group of 50 of the largest and most liquid stocks that trade on the National Stock Exchange of India. It offers investors a way to speculate on the performance of India's top stocks, but through an internationally accessible futures contract. It uses the free-float market capitalisation method, with higher weight given to those companies with more publicly available shares and with higher market value.

GIFT Nifty is maintained by the NSE International Exchange, a wholly owned subsidiary of the National Stock Exchange. It operates from GIFT City and is responsible for the calculation, governance, and day-to-day operations of the Index.

GIFT Nifty is a real-time, global barometer for the Indian market sentiment. It operates for almost 21 hours a day, reflecting how international investors are responding to global events ahead of Indian market hours, like US Fed decisions, geopolitical developments, or economic data. It often gives early indicators of the direction the Nifty 50 index is likely to take when the market opens due to global events. Therefore, institutional investors use it for overnight hedging and managing risk.

GIFT Nifty is not an officially recognised benchmark for Indian mutual funds or ETFs, as usually those funds benchmark their performance against broader indices like the Nifty 50 or the Sensex. But the GIFT Nifty is a futures contract that is based on the Nifty 50 and aimed at targeting global investors.