Understanding FII and DII in the Indian Stock Market

What is FIIs?

[{"selector":"#anim-525be6ea-ab98-4caf-ad13-4972e6fe23b9","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e18e1fcc-2666-44ef-866f-c1f524e1cb3a","keyframes":{"transform":["translate3d(-117.46575%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7ccd40d7-b026-403f-897c-8f41ad1a92c5","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f09bb157-5ddb-4667-9187-065327e5c3c9","keyframes":{"transform":["translate3d(0px, 132.68923%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] FII (Foreign Institutional Investor): Foreign investors investing in India's securities market. Some examples of FIIs are: Government of Singapore, Aidos India Fund Ltd, Nomura Singapore Limited Odi, Bao Value Fund.

What is DIIs?

[{"selector":"#anim-bea948ea-ebb5-452c-b370-2ae454760f96","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-846a33ae-41a4-44c8-976a-ec944cd893b8","keyframes":{"transform":["translate3d(0px, 165.71140%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-4fe04377-2b17-4f3c-9847-41442c140f0f","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-eb68bc0d-3194-4ca3-ba36-045b90118d77","keyframes":{"transform":["translate3d(-117.46575%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] – DII (Domestic Institutional Investor): Domestic entities investing within India. Some examples of FIIs are: Quant Mutual Fund, SBI Mutual Funds, Life Insurance Corporation of India (LICI).

Types of FIIs & DII

[{"selector":"#anim-3deb617e-f225-4773-b75c-62f22a723711","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-2e48b5d2-8fa8-4ca8-87fe-e136220b92e6","keyframes":{"transform":["translate3d(-124.65754%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Important Terms to Know in FII and DII Activities

[{"selector":"#anim-b017f51d-d204-4c07-ac97-74222936e708","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-3a36b6c9-1aba-4e1b-8f25-b93dc369208a","keyframes":{"transform":["translate3d(0px, 161.92071%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e724f6d5-32df-4fc0-87bd-9ec3305aa828","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d0d78a70-cb64-449e-83e3-62d34b38f536","keyframes":{"transform":["translate3d(-115.75758%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] – Net Inflows/Outflows: Understand market sentiment. – Sectoral Investment: Gauge trends in different sectors. – Volume: Impact on liquidity and market movement. Historical Trends: Identify patterns by comparing with historical data.

FIIs and DIIs Impact on Indian Stock Market

[{"selector":"#anim-53c14f81-8226-49dd-aeb8-10d35fe2cdbd","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1a4a7023-b0dd-4f7a-b8ba-2a75b6ec0ee6","keyframes":{"transform":["translate3d(0px, 115.20467%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-cda267ec-da53-475d-b6b6-5820f96c15a9","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ca2593c6-51a5-4bb1-a44c-33ef9c4c89c5","keyframes":{"transform":["translate3d(-114.20119%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] – Market Liquidity: They provide liquidity, making it easier to buy/sell securities. – Market Trends: Their activity influences market trends and sentiment. – Economic Impact: FII inflows can indicate foreign confidence in the country's economy, while DII activity reflects domestic investor sentiment.

Read our blog to know in detail about FIIs and DII in the Indian market and their importance.

[{"selector":"#anim-57f1d9ec-b30a-4982-86e1-7c8ea2381739","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-3f0fda0f-81a3-4878-884c-58cc20e35b33","keyframes":{"transform":["translate3d(112.69349%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Arrow