Market Mechanics4 min read
FII and DII: who moves Indian markets?
Two groups of big investors, foreign and domestic, whose daily buying and selling shapes the market's direction.
FIIs, foreign institutional investors, are overseas funds that invest in Indian stocks. DIIs, domestic institutional investors, are Indian mutual funds, insurers and pension funds.
The daily tug-of-war
Every trading day, the exchanges publish how much each group bought and sold on a net basis. When foreigners sell and domestic funds buy in similar amounts, the market can stay flat even on heavy volume. Watching the two together tells you who is driving the tape.