FII stands for Foreign Institutional Investors, while DII stands for Domestic Institutional Investors.Both FII and DII refer to institutional investors, or large entities such as mutual funds, pension funds, and insurance companies that invest in the stock market,but there are some key differences between the two.
DII's, on the other hand, are institutional investors that are based in the country. This includes mutual funds, insurance companies, and pension funds. They invest in the stock market of their own country and are subject to regulations and rules set by the government and regulatory bodies of their own country.
The presence of FII and DII in the stock market can have a significant impact on the market's performance. In general, when FII's invest in the market, it can lead to an influx of foreign capital and can boost the market's performance. Similarly, when DII's invest in the market, it can lead to an influx of domestic capital and can also boost the market's performance.
On the other hand, when FII's or DII's withdraw their investments from the market, it can lead to a decrease in market performance. Therefore, it is important to keep an eye on the activity of FII's and DII's in the market as it can provide insight into the market's future performance.
Both FII's and DII's play an important role in the stock market. FII's bring in foreign capital and can help to provide liquidity to the market, while DII's represent domestic savings and investment.
It's important to note that the investment by FII's and DII's are subject to government regulations, such as limits on the percentage of a company's shares they can own, and can be subject to change due to economic and political conditions.
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