SGX Nifty is a derivative of the Nifty 50 index, which represents the top 50 companies listed on the National Stock Exchange of India. It is traded on the Singapore Exchange (SGX) and serves as an indicator of how the Indian stock market might perform when it opens. Investors and traders use SGX Nifty to gauge market sentiment and make informed decisions. Since it operates outside of Indian trading hours, it provides a glimpse into potential market movements, helping participants prepare for the trading day ahead in India.