What Is FII and DII? Why Foreign Investors Move the Indian Stock Market
If you follow stock market news, you often hear: “FIIs sold heavily today.” “DII buying supported the market.” But what does this actually mean? Let’s understand in simple language. What Is FII? FII stands for Foreign Institutional Investor . These are investors or institutions from outside India who invest money in Indian markets. Examples include: Foreign mutual funds Global hedge funds Investment banks Pension funds When FIIs invest money in India, dollars enter the country and are converted into rupees to buy stocks. What Is DII? DII stands for Domestic Institutional Investor . These are Indian institutions that invest in Indian markets. Examples include: Indian mutual funds Insurance companies Banks Financial institutions So simply: FII = Foreign money DII = Indian money Why Do FIIs Impact the Market So Much? FIIs usually invest very large amounts of money. When they buy heavily: Demand increases Index rises Market se...