Foreign Institutional Investors (FIIs) are overseas organisations that invest substantial amounts of capital in Indian financial assets. Common FIIs include mutual funds, pension funds, sovereign wealth funds, and insurance companies. Their investments help improve market liquidity and support efficient price discovery in the stock market. FII inflows and outflows can affect stock prices, market volatility, and investor confidence. Tracking FII activity helps investors understand foreign participation in Indian markets and assess broader market trends.
