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.

What is FII and DII?

Important integrals in the Indian stock market are FII and DII. Retail investors are categorised under Fll or Foreign institutional investors, whereas investment institutions like mutual funds and pension funds are categorised under Fll or retail investors. Through these institutions, domestic institutional investment (DII) is conducted. 

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 FII and DII 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. 

What Types of FIIs vs DIIs are Allowed in India? 

Here are some FII and DII types allowed in India: 

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  

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.