The Indian stock market continues to witness notable investment trends, with Domestic Institutional Investors (DIIs) and Foreign Institutional Investors (FIIs) making significant moves. As of recent data, DIIs made substantial net purchases of shares worth ₹2,970 crore, whereas FIIs net sold shares totaling ₹689 crore.
Understanding the DII and FII Market Activities
Institutional investors like DIIs and FIIs play a critical role in shaping market sentiment. DIIs include entities such as mutual funds, insurance companies, banks, and pension funds that invest domestically. In contrast, FIIs are foreign investors who bring in capital to invest in Indian equity markets.
In the last week, the stock market witnessed a strong inflow from DIIs. This was largely driven by their confidence in sectors like IT, banking, and infrastructure. On the other hand, FIIs seem to be reducing their exposure due to global uncertainties, which have resulted in net outflows from emerging markets like India.