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Gift Nifty Futures Hit Record Turnover in April 2024

02 May 20245 mins read by Angel One
Gift Nifty futures hit a record turnover of USD 82.04 billion in April 2024, driven by strong arbitrage opportunities, FII interest, and growing trading volume.
Gift Nifty Futures Hit Record Turnover in April 2024
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Gift Nifty Futures Hit Record Turnover in April 2024

The Gift Nifty futures market has experienced a surge in trading activity at the NSE International Exchange (NSE IX) in Gujarat over the last four months, achieving a record turnover of USD 82.04 billion in April 2024. This represents a 6% increase from the previous month, demonstrating the growing popularity of Gift Nifty among traders and investors.

Rupee Equivalent Surpasses Expectations

In rupee terms, the turnover in April was nearly Rs 6.85 lakh crore, significantly higher than the Rs 3.99 lakh crore recorded for domestic Nifty futures. This considerable growth in turnover is a testament to the robust trading opportunities offered by Gift Nifty, especially in comparison to local markets.

Nifty Futures Turnover Rs in Cr
Month Gift NSE
Jul-23 4,71,776 3,02,527
Aug-23 5,53,890 2,95,219
Sep-23 5,57,672 2,78,454
Oct-23 5,27,867 2,77,937
Nov-23 5,14,529 2,45,415
Dec-23 5,46,044 3,73,663
Jan-24 6,13,121 4,61,974
Feb-24 6,47,892 4,37,104
Mar-24 6,45,841 3,94,303
Apr-24 6,84,149 3,99,016

Open Interest Soars with Better Arbitrage Opportunities

The open interest in Gift Nifty has nearly doubled compared to that in the domestic Nifty, suggesting that traders find better arbitrage opportunities in the Gift Nifty market. The primary driver for this increase is the potential for index arbitrage between Gift Nifty and local markets, drawing the interest of traders looking to capitalize on price discrepancies.

FIIs Favor Gift Nifty for Anonymity and Leverage

Foreign Institutional Investors (FIIs) are increasingly opting to trade in Gift Nifty due to its unique advantages, such as enhanced anonymity, greater convenience, and higher leverage compared to domestic markets. This has further fueled the surge in trading volumes and open interest.

All-Time High in Monthly Turnover and Open Interest

Gift Nifty achieved an all-time high monthly turnover of 18,66,728 contracts worth USD 82.04 billion (Rs 6,85,187.4 crore equivalent). Additionally, on April 23, 2024, it set a new record for open interest with 3,38,335 contracts worth USD 15.09 billion (Rs 1,25,847 crore equivalent). These remarkable milestones highlight the growing importance of Gift Nifty as a key player in the Indian equity market.

Continuous Growth Since Full-Scale Operations

Since the commencement of full-scale operations on July 3, 2023, Gift Nifty has consistently seen exponential growth in trading turnover. The cumulative volume from July 2023 to April 2024 has reached over 16.86 million contracts, with a total cumulative turnover of USD 694 billion. This rapid growth reflects the market’s acceptance and the strong demand for Gift Nifty futures.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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