FII and DII Data Live

FII and DII Trading Activities

FIIs, including registered offices, banks, and government bodies, invest in other countries' financial assets to make profits. India's growing potential attracts FIIs from various countries, contributing to currency appreciation. DIIs, including Indian banks, mutual funds, insurance companies, and government bodies, trade large volumes of shares, significantly impacting the Indian stock market.

The Purpose of FII and DII in the Share Market

The Indian share market, like many others, sees participation from two major categories of institutional investors, Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs). Both play crucial roles in the market's dynamics, each with distinct purposes.

Foreign Institutional Investors (FIIs)

• Bring in foreign capital: FIIs invest funds from overseas investors like pension funds, hedge funds, and sovereign wealth funds. This inflow of foreign capital helps to increase liquidity in the market, potentially leading to higher valuations for Indian companies. 
• Provide global perspective: FIIs bring with them expertise and insights from global markets, which can help to identify undervalued opportunities in the Indian market and drive price discovery. 
• Influence market sentiment: Large FII buying or selling can influence market sentiment and impact stock prices in the short term.

Domestic Institutional Investors (DIIs)

• Mobilise domestic savings: DIIs invest funds collected from domestic sources like mutual funds, insurance companies, and pension funds. This helps to channel domestic savings into productive investments, supporting economic growth.
• Provide stability: DIIs generally have a longer-term investment horizon than FIIs, contributing to market stability by counterbalancing short-term volatility. 
• Focus on local knowledge: DIIs have a deeper understanding of the Indian economy and local companies, allowing them to make informed investment decisions based on specific market dynamics.

Overall, both FIIs and DIIs play complementary roles in the share market. FIIs bring in fresh capital and global insights, while DIIs provide stability and mobilise domestic savings. Their combined activity contributes to a more vibrant and efficient market, benefiting investors and the economy.

How to Use FII and DII? 

• The NSE website updates FII and DII statistics daily. A retail investor can keep track of NSE FII DII data
• actions, such as the securities they buy and sell. 
• The FII and DII data may be read using the Buy and Sell values, however it is preferable to focus on the net value. This will assist you make the greatest stock selection possible. If the net value of an FII or DII is positive, they have made a net buy; if it is negative, they have sold it. 

Practical Application of FII & DII

Using FII DII Data today for Intraday Trading

Intraday traders can utilise real-time or regularly updated FII DII data to validate short-term market movements and take appropriate positions. Let's explain this with a few examples:

• Scenario 1: The market is going upward, and FII/DII figures reflect substantial net purchasing. This demonstrates genuine institutional investor interest and raises the likelihood of the rise continuing in the short future. Intraday traders might seek for long positions on dips or breakouts while keeping the general bullish tendency in mind.
• Scenario 2: Despite the market's dramatic sell-off, FII/DII data shows that they remain net purchasers. This disparity signals that the selling may have peaked and that a turnaround is imminent. Traders might look for early signals of a bullish reversal, such as a hammer candlestick pattern, to enter long positions for a potential rebound.
• Scenario 3: Although the market is on an upswing, FII/DII statistics suggest steady selling. This negative divergence is a red indicator, indicating that the rally may be losing momentum. Traders should use caution and book profits on existing long positions. Fresh long positions should be avoided until FII/DII selling stops.

Types of FIIs that are allowed in India: 

• Mutual funds 
• Investment Trusts
• Banks 
• International Pension Funds 
• Foreign Central Banks 
• Sovereign Wealth Funds 
• Insurance companies 
• Endowments in the Public Interest 
• Foreign Government agencies 
• International Multilateral Organizations

Types of DIIs that are allowed in India: 

• Indian mutual funds 
• Local pension funds 
• Indian banks
• Indian financial institutions 
• Indian insurance companies  

Daily Vs. Monthly Data for FII & DII

Here is the difference between daily vs monthly data for FII and DII.

Daily Activity Data for FII DII 

Daily FII DII data provides an overview of institutional investment activities on a daily basis. This data is critical for short-term traders who must make rapid judgements based on current market movements. Daily data aids in recognising rapid variations in market sentiment and can serve as a leading indication of market moves.

Monthly Activity Data for FII and DII 

Monthly data aggregates daily activity to provide a more comprehensive perspective of investment patterns. This is especially important for long-term investors who prefer to comprehend long-term patterns over daily swings. Monthly data can assist discover patterns and trends that may not be obvious in daily data, such as long-term bullish or negative views.

How to Interpret FII & DII Activity? 

FII DII data may be analysed in a variety of ways to determine market sentiment and trends:

1. The daily net FII/DII investment: The net buying or selling numbers released at the conclusion of each trading day offer an overview of institutional activity for that session. Comparing this data to the day's price movement can reveal how the broader market reacts to FII/DII flows. 
2. Cumulative FII/DII activity throughout time: Averaging daily net investment data across a week, month, or quarter might indicate larger trends in FII and DII positioning. If FIIs, for example, have been continuously purchasing for several weeks, it signals an optimistic market tone.
3. FII/DII intensity in relation to market volume: Calculating the proportion of overall market turnover accounted for by FII and DII can reveal how active they are in pushing trade volumes and liquidity. Higher FII/DII involvement compared to overall volume indicates that they are now the main participants in the market. 
4. Category-specific FII/DII activity: FII and DII are umbrella words for numerous sub-categories of institutional investors. Granular data indicating net investment by each FII/DII sub-category can help identify which groups are more active. For example, strong buying by international mutual funds may indicate that they are utilising new inflows from overseas. 

Important Terms to Know in FII and DII Activity? 

Some important terms related to FII and DII activity today are:

• PIS (Portfolio Investment Scheme): This scheme allows FIIs (Foreign Institutional Investors), NRIs (Non-Resident Indians), and PIOs (Persons of Indian Origin) to invest in the Indian stock market through designated bank accounts. 
• FDI (Foreign Direct Investment): This type of investment involves acquiring a controlling stake or a long-term interest in an Indian company or business.
• FPI (Foreign Portfolio Investment): This type of investment involves buying and selling financial assets or securities in the Indian market without acquiring a controlling stake or a long-term interest.