The full form of DII is Domestic Institutional Investors. These are Indian Institutional Investors who invest in the stock market.
Domestic = Local (Indian)
Institutional = Companies or Organisations.
Investors = Those who invest.
For example, an individual invests his money in HDFC Mutual Fund. The money, which is to be invested in the stock market, is transferred from the individual to HDFC Asset Management Company (HDFC AMC).
HDFC AMC is the Domestic Institutional Investor (DII), who buys and sell shares in the stock market.
DII includes Mutual Fund houses, Unit Trust of India, Financial Institutions, Insurance Companies, Banks and Venture Capital Funds.
DII Buying and Selling Data
Each day DII’s participate in the market by buying and selling stocks. At the end of the day, the data is released on websites of stock exchanges like NSE and BSE.
The following data is of 31st March 2020:
| Buy Value | Sell Value | Net Value | |
| DII | 6,955 cr | 3,379 cr | 3,576 cr |
| FII | 6,295 cr | 9,340 cr | – 3,045 cr |
In the table above, ignore the numbers from FII (Foreign Institutional Investors). You can follow the link and read more about them.
Let’s stick to DII’s here.
On 31st March 2020, DII’s have bought shares worth ₹ 6955 crore and sold shares worth ₹ 3379 crore. Net value (buy value minus sell value) is ₹ 3576 crore.
That means, Domestic Institutional Investors were net buyers on this day. When DII’s invest huge amount of money, the stock market can rise.
| 31 Mar 2020 | SENSEX | NIFTY |
| Closing | 29468.49 | 8597.75 |
| Gain | 1028.17 (3.62%) | 316.65 (3.82%) |
As you can see from the table above, due to heavy buying from DII, the Sensex rose by 3.62% and the NIFTY did better, rising 316 points or 3.82% on 31st March 2020.
When small individual investors like you and me, buy or sell shares in the stock market – we cannot make much difference to the share prices. That’s because our quantity is usually too low.
But when DII’s buy, they invest huge amounts of money. This can increase the demand significantly. When demand is more and the supply (sellers) is less, the price of stocks rise.
When the stock price rises – the NIFTY which consists of Top 50 companies and Sensex which consists of Top 30 companies – will also automatically rise along with them.
For daily activity data on DII buying and selling, you can visit the NSE Website
Also Read: What is FII?
Very well explained. I liked that you explained with real Indian examples. Most other websites have foreign examples.
I would also like to know if someone like Rakesh Jhunjhunwala buys shares in huge quantity will he be considered DII too? I think not, but want clarification from you regarding the same
Hi Sadashiv
No, Rakesh Jhunjhunwala does not come under the DII category.
Hi can you please give me list of DII companies invest in stock market