You might have wondered that why sometimes market surges or crashes even when there is no news. Yes, FIIs (Foreign Institutional Investors) and DIIs (Domestic Institutional Investors) are the reason behind these big moves. These are the big investment firms, mutual funds, hedge funds, Insurance companies, and banks that bring in huge capital into the market. Example: the retailor may invest Rs 40000 in a day, but the FIIs and DIIs can invest 4000 crores in a day. If FIIs buy, then it shows bullish momentum in the market, while FIIs selling makes the market fall. If FIIs buys a specific share, then it’s a positive indicator to buy that share after analysing other factors also.
