Economies like India, which offer relatively higher growth than the developed economies, have gained favour among investors as attractive investment destination for foreign institutional investors (FIIs). The Indian stock market is highly volatile and the FII and DII’s have an important role in the upward and the downward movement of the Stock market. The objective of the study is finding the impact and relationship between FII and DII on Indian stock markets namely BSE & NSE. The study based on secondary data collected from BSE & NSE. The data on monthly market prices of leading sector listed in BSE & NSE have been collected. The data used for the analysis are yearly index prices of NSE & BSE for the period of 11 calendar years i.e. 2009 to 2019.  The tools used for to analyze the study are Correlation coefficient (r), R square &Multiple R. finally it is observed that DII’s are influencing more on stock markets than FII’s. So, government should implement some measures to attract the DII’s.

Index Terms- Sensex, Nifty, FII, DII, Stock market, regression