Foreign Institutional Investors (FII): These are investment entities from outside the country that invest in domestic financial markets. Their activities include purchasing and selling securities, stocks, and bonds.
Domestic Institutional Investors (DII): These are financial institutions within the country that invest in the market. They include entities like mutual funds, insurance companies, and pension funds.
Why Monitoring FII & DII Data Is Important
Investment Decisions: Investors use FII and DII data to make informed decisions on where to allocate their funds.
Market Sentiment: The level of investment by FIIs and DIIs can indicate overall market sentiment.
Economic Indicators: Trends in FII and DII investments can serve as indicators of economic health and market stability.