A Study on the Impact of FII and DII Investments on Market Movements in India

Abstract

Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) play a significant role in influencing the Indian stock market through their investment decisions. This study examines the impact of FII and DII investments on market movements by analysing market liquidity, volatility, investor sentiment, stock prices, and market stability. A descriptive research design was adopted using primary and secondary data collected from 100 respondents through a structured questionnaire. Simple Comparative Analysis was used to compare the influence of FIIs and DIIs on market performance. The findings indicate that FIIs significantly influence short-term market movements, while DIIs contribute to market stability and long-term growth by supporting investor confidence and improving market efficiency.