Definition
FII / FPI
FIIs / FPIs (Foreign Institutional / Portfolio Investors) are overseas entities that invest in Indian stocks and bonds, and are major drivers of market moves.
FPIs include foreign funds, pension funds, sovereign wealth funds, and ETFs that invest in Indian markets after registering with SEBI. Their large, fast-moving flows often set the short-term direction of the Nifty and Sensex.
Daily 'FII/DII data' showing whether foreigners were net buyers or sellers is closely watched. Heavy FPI selling (often during global risk-off events or a weak rupee) can pressure the market even when domestic fundamentals are sound. The terms FII and FPI are used interchangeably after a 2014 merger of categories.
Related terms
- DIIDIIs (Domestic Institutional Investors) are Indian institutions such as mutual funds, insurers, banks and pension funds that invest in the stock market.
- Retail InvestorA retail investor is an individual investing relatively small amounts of personal money, as opposed to large institutions.
- Block DealA block deal is a large, single transaction of shares executed in a dedicated exchange window at a negotiated price within a permitted band, designed for institutions to trade size efficiently.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.