The Role of Domestic Institutional Investors (DIIs or Mutual Funds) in Stabilizing Indian Stock Markets against Foreign Institutional Investors (FIIs) Outflows

Authors

  • Chitranjan Singh HOD and Assistant Professor, Department of Commerce, Government Degree College, Vrindavan, Mathura, Uttar Pradesh, India

DOI:

https://doi.org/10.31033/IJEMR/16.2.2026.1877

Keywords:

Mutual Funds, Stock Market, Foreign Institutional Investor

Abstract

Domestic Institutional Investors (DIIs), particularly mutual funds, have emerged as a critical stabilizing force in Indian stock markets, often acting as a counter-cyclical shield against volatile Foreign Institutional Investor (FII) outflows. Driven by high Systematic Investment Plan (SIP) inflows, DIIs provide structural, long-term liquidity, absorbing selling pressure during foreign sell-offs to reduce market volatility.

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References

https://www.investopedia.com/terms/f/fii.asp

Reserve Bank of India. Investment in Indian companies by FIIs/NRIs/PIOs.

https://www.angelone.in/knowledge-center/share-market/dii

https://www.kotak.bank.in/en/stories-in-focus/mutual-funds/what-is-sip.html

Surbhi Khanna. (2024). ET online.

https://www.angelone.in/news/market-updates/dii-flows-cross-rs-6-trillion-in-2025-in-india-stocks-offsetting-fpi-outflows-of-rs-2-trillion

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Published

2026-04-06
CITATION
DOI: 10.31033/IJEMR/16.2.2026.1877
Published: 2026-04-06

How to Cite

Singh, C. (2026). The Role of Domestic Institutional Investors (DIIs or Mutual Funds) in Stabilizing Indian Stock Markets against Foreign Institutional Investors (FIIs) Outflows. International Journal of Engineering and Management Research, 16(2), 34–37. https://doi.org/10.31033/IJEMR/16.2.2026.1877

Issue

Vol. 16 No. 2 (2026): April Issue

Section

Articles

License

Copyright (c) 2026 Chitranjan Singh

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This work is licensed under a Creative Commons Attribution 4.0 International License.

Research Articles in 'International Journal of Engineering and Management Research' are Open Access articles published under the Creative Commons CC BY License Creative Commons Attribution 4.0 International License http://creativecommons.org/licenses/by/4.0/. This license allows you to share – copy and redistribute the material in any medium or format. Adapt – remix, transform, and build upon the material for any purpose, even commercially.