The GIFT Nifty is an international derivative of India’s Nifty 50 index listed at the NSE International Exchange (NSE IX) in GIFT City, Gandhinagar. It is a revolutionary step in connecting Indian financial markets with global investors. Previously known as SGX Nifty, the transition to GIFT City places it in a leadership position as a platform for foreign institutional investors and hedge funds to access India’s top companies by trading Indian equity index futures in US dollars. This product attracts global players by offering tax benefits, round-the-clock trading hours on two sessions (6:30 AM to 3:40 PM IST and 4:35 PM to 2:45 AM IST), and hedging or speculating on the Indian market beyond conventional Indian regulatory horizons.
‘Pre-market’
Experts note that GIFT Nifty acts as a key pre-market for local markets, providing early indications of market mood that tend to foresee the opening bias of the NSE’s Nifty 50. With a market structure founded on free-float market capitalization in a broad base of sectors ranging from IT to financial services, pharmaceuticals, and consumer goods, GIFT Nifty continues to remain representative of overall Indian equities. Segment turnover levels have also increased phenomenally, with record turnovers exceeding $100 billion a month and evidencing increased global investors’ interests in Indian equities.
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Sectoral angle
In terms of broader Indian market perspectives for 2025, specialists are guardedly optimistic despite persisting global uncertainties. Sectoral themes are strong interest in financials, domestic consumption, and infrastructure, backed by solid government capex. Experts such as Sanjay Chawla and Siddhartha Khemka point out that although markets are today fairly valued equity prices, earnings growth is what is needed to sustain these levels. Mid and small caps are also projected to outperform large caps in the long term as they have greater growth potential. Certain sectors such as healthcare, pharmaceuticals, and defense are pointed out to have long-term growth potential, but high valuations in consumer technology call for caution.
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Effect of US markets
US markets have strong leveraging effects on Indian equities, primarily via foreign institutional investment flows and macroeconomic interlinkages. The interest rate position of the US Federal Reserve and the potential for market correction have a spillover impact on investor sentiment and liquidity of the Indian markets. A US equity correction could initiate volatility in India, aided by new retail investors’ participation, as projected by the Economic Survey 2025 and analysts. Yet, Indian markets’ domestic demand resilience and government reforms remain to provide the cushion, offsetting external pressures.
In conclusion, GIFT Nifty has evolved into a critical bridge for global investors to access Indian market exposure with more flexibility, while Indian markets during 2025 are facing the dual test of global headwinds and domestic growth opportunities. Professional opinions uniformly incline toward a defensive, sector-restricted strategy supported by superior earnings and macro stability, with vigilant watch over US market trends as the most important external driver of India’s market performance. This phenomenon reflects India’s evolution into a globally integrated but fundamentally driven equity market.
