How FII and DII Activity Affects Retail Investors and Their Investment Strategy
Foreign Institutional Investors (FII) and Domestic Institutional Investors (DII) significantly influence market movements, often affecting retail investors. FII and DII activity can create market trends, with FIIs typically driving larger market shifts through significant capital inflows or outflows. Retail investors, influenced by these movements, may adjust their strategies, either following the market trends or reacting to volatility. The actions of FIIs and DIIs also impact stock liquidity and pricing, leading retail investors to reassess their portfolios, adopt risk management strategies, or make investment decisions based on the perceived market direction influenced by institutional activity.