FII & DII

FII DII data tell investors about foreign institutional investors and domestic institutional investors. Knowing about these is an essential part of FII data and trading activity in the stock market. Any investor that takes up investing activity outside their home country is a foreign institutional investor.

FII and DII data today have a lot to do with trading and investing in the stock market. A domestic institutional investor or DII belongs in a category of investors that invest in any country in which they reside.

Institutional investors are essentially organisations or companies which invest capital on behalf of their members or clients. FII-DII activity impacts the stock market, and so, it impacts other investors too.

After you are on the homepage of the portal of Research 360, you can click on the tab of FII DII. Data will show up and you get information about any details pertaining to FII and DII trading activity.

To analyse FII and DII data trading activity, one can look at the net purchase or sales of FIIs and DIIs in the cash and derivatives segments of the market. A positive net purchase indicates that the investors are buying more than selling, and vice versa. A high net purchase by FIIs or DIIs indicates a bullish sentiment and a high net sale indicates a bearish sentiment. One can also compare the FII and DII data with the market indices, such as Nifty and Sensex, to see the correlation and impact of the institutional investors on the market movements.

FIIs and DIIs are allowed to invest in various financial instruments and securities in India, such as equity shares, debt instruments, mutual funds, exchange-traded funds, real estate investment trusts, infrastructure investment trusts, and so on. However, there are some limits and regulations imposed by the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) on the FIIs and DIIs. For example, FIIs can invest up to 10% of the paid-up capital of a single company and up to 24% of the total paid-up capital of all companies unless the shareholders approve a higher limit. DIIs, on the other hand, do not have such restrictions on their ownership.

Some of the important terms related to FII and DII activity are:

PIS: Portfolio investment scheme.It is a scheme that allows FIIs, NRIs, and PIOs to invest in the Indian stock market through designated bank accounts.

FDI: Foreign direct investment.It is a type of investment that involves acquiring a controlling stake or a long-term interest in an Indian company or business.

FPI: Foreign portfolio investment.It is a type of investment that involves buying and selling financial assets or securities in an Indian market without acquiring a controlling stake or a long-term interest.