In an exciting development for the Indian financial market, GIFT Nifty, previously known as SGX Nifty, has embarked on a successful journey in India. The derivative contract of the Nifty50 index, denominated in US dollars, made its debut in Gujarat’s finance hub, the Gujarat International Finance Tec-City (GIFT).
On its first day of trading, GIFT Nifty surpassed all expectations by achieving a remarkable turnover that crossed the $1 billion mark. This momentous event not only brings increased liquidity but also signifies a major step in preventing the trading of domestic products on overseas exchanges.
With the shift from SGX Nifty to GIFT Nifty on July 3rd, the Indian financial landscape witnessed an unprecedented milestone. GIFT Nifty’s inaugural trading day showcased a stunning turnover of over $1 billion, establishing itself as a significant player in the Indian financial ecosystem. Furthermore, the open interest reached an impressive $8 billion, reflecting the enthusiasm and participation of market participants.
Extended Trading Sessions
GIFT Nifty operates within two sessions to accommodate global investors across different time zones. The first session spans from 6:30 AM to 3:55 PM, while the second runs from 4:35 PM to 2:35 AM the following day. This extended trading schedule provides traders nearly 21 hours of access to GIFT Nifty contracts, effectively covering market hours in Asia, Europe, and the United States.
- The introduction of GIFT Nifty is expected to have far-reaching consequences for the Indian financial market. Its extended trading hours offer increased opportunities for trading, attracting higher volumes and further augmenting liquidity.
- Additionally, using US dollars as the base currency will foster greater foreign capital inflows into India, opening up unparalleled access between India and the global market.
- With GIFT Nifty at its core, the Gujarat International Finance Tec-City is well on its way to establishing itself as a burgeoning global financial hub. This development is set to play a pivotal role in India’s growth story, acting as a catalyst for the nation’s economic progress.
GIFT Nifty’s exceptional first-day performance, with a turnover surpassing $1 billion, sets an optimistic tone for its future in the Indian financial market. By aligning with international standards and attracting global investors, GIFT Nifty is poised to transform the economic landscape in India. With extended trading hours and the potential for increased liquidity, this new venture marks a significant milestone for both the Gujarat International Finance Tec-City and the Indian economy.
India Struggles with 8% Unemployment for the Third Time in 2023
India’s economy faces a daunting challenge as the nation’s unemployment rate has exceeded 8%. The escalating unemployment crisis has taken a toll on rural and urban areas, with significant implications for the country’s progress and the livelihoods of millions of job seekers.
Rural Unemployment Hits 2-Year High
In June, rural unemployment in India soared to a staggering 8.73%, marking a two-year high. This increase can be attributed to seasonal joblessness, which escalated from 6.99% in the previous month. The conclusion of the harvesting season in May and the delayed start of sowing for new crops in July due to the progress of the Monsoon are key factors contributing to this concerning trend.
Urban Unemployment Shows Some Relief
While rural areas grapple with rising unemployment rates, urban centers experienced a slight alleviation in their joblessness figures. Urban unemployment decreased from the previous month’s high of 9.13% to 7.87% in June. While this decline may offer a glimmer of hope, the overall unemployment rate for the country remained at a significant 8.45% for June.
Challenges Faced by the Government’s Job Creation Initiatives: Despite the government’s efforts to generate one million jobs, the persistently high unemployment rates indicate the challenges in creating sufficient employment opportunities. This pressing issue demands further attention and proactive measures to address the underlying causes of unemployment in the country.
Implications for Job Seekers and the Economy: The escalating unemployment crisis raises concerns about India’s labor market and its far-reaching consequences. With a substantial portion of the population depending on employment for their livelihoods, the lack of job opportunities poses significant challenges to the overall well-being and progress of the nation.
India’s unemployment rate has once again surpassed 8%, posing a critical challenge to its economy and citizens. The surge in rural joblessness and the persistent urban unemployment highlight the need for immediate action and focused interventions to alleviate this crisis.
As the nation grapples with the consequences of this alarming trend, it becomes imperative for stakeholders to collaborate and develop comprehensive strategies to generate sustainable employment opportunities and foster economic growth.